Hedge Accounting Tweaks Floated by US Board for Public Input

The US accounting board is seeking public feedback on whether targeted rulebook changes would improve how companies report risk management activities in their financial filings.

The Financial Accounting Standards Board published a draft plan Wednesday that would tweak guidance for net investment and interest rate risk hedging following feedback on its 2025 agenda outreach project. The changes aim to better align hedge accounting—which has been critiqued as overly costly and time-consuming to apply—with the real life economics of companies’ risk management.

Businesses can minimize exposure to interest rate swings, for example, by buying futures, ...