The Clearing House Association, jointly with the ABA, submitted a comment letter to the FASB in response to a Proposed Accounting Standards Update issued on August 6 to clarify whether a novation requires de-designation and to simplify evaluating puts/calls. TCH is supportive of the proposal which clarifies that changes in the counterparty to a derivative that has been designated as a hedging instrument does not require designation of that hedge accounting relationship if all other hedge accounting criteria continue to be met. The letter supports allowing banks to choose whether to implement the guidance on a prospective or retrospective basis.
You Might Also Be Interested In...
Cybersecurity Financial Trades Call for Accessible, Functional and Simple Cyber Incident Reporting Rules
Security BPI Comments on NYDFS Proposal on Cybersecurity Requirements for Financial Services Companies
Regulatory Reporting and Accounting BPI Comments to Banking Agencies on Reporting of Notional Pool Balances on Schedule RC-O of the Call Reports
Regulatory Reporting and Accounting BPI and IIB Comment on Federal Reserve Proposal to Revise FR Y-7Q Capital and Asset Report for Foreign Bank Organizations
Regulatory Reporting and Accounting BPI Comments on Fed Proposal to Revise Structure Reporting and Recordkeeping Requirements for Domestic and Foreign Banking Organizations
More Posts by This Author
Bank Liquidity Why Regulators Should Consider Banks’ Borrowing Capacity from the Fed in Liquidity Assessments
AML, Bank Secrecy Act and Sanctions BPI’s Heather Hogsett Testifies Before House Subcommittee on Cybersecurity, CISA’s Contributions