FASB Meeting Decisions

In its October meeting, the FASB voted to defer the sunset date of Topic 848 to December 31, 2024 and to remove the Reference Rate Reform - FV Hedge project from its technical agenda.

Topic 848 was designed to provide relief while companies are exposed to reference rate reform. It is specifically for "derivative instruments that do not reference a rate expected to be discontinued but that have an interest rate for margining, discounting, or contract price alignment that is modified because of reference rate reform." Extending the sunset date for this relief gives clients 2 more years to make any necessary changes.

The original objective of the rate reform/fair value hedging project was to develop a principle for identifying interest rates eligible for fair value hedge accounting both within and outside the US. After further research, the Board has removed the project from its technical agenda.

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About Epsilon Technologies Group

Epsilon is a vibrant capital markets technology solutions and services firm serving small and medium-sized financial institutions such as regional banks, Government-Sponsored Enterprises, and Federal Home Loan Banks. The Group’s deep expertise embraces every aspect of software development, products, data, technologies, and consulting. Epsilon offers ETS and Principia Analytic System as licensed products, and various innovative bespoke solutions across a broad set of capital markets domains. Epsilon also offers a full range of consulting services, including implementation, advisory, analytics, risk management, accounting, and data modeling.