US Accounting Board Weighs Hedging Model, Cash Flow Details (1)

The US accounting board launched an effort focused on expanding a financial reporting technique that captures companies’ risk-management moves in financial statements.

The Financial Accounting Standards Board voted Wednesday to add a project to its technical agenda on extending what’s known as the portfolio layer method to financial liabilities in hedge accounting guidance, following banking and insurance industry feedback. Board members agreed there are feasible solutions to improve the US rulebook, called generally accepted accounting principles, or GAAP.

“From a big picture perspective, I think we continue to hear that allowing more flexibility to narrow the gap—no pun intended—in reflecting ...