Targeted Improvements to Hedging (BDO Comment Letter)
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On June 17, 2026, the FASB issued an Exposure Draft proposing targeted amendments to ASC 815, Derivatives and Hedging, to improve hedge accounting for interest rate risk hedging and net investment hedging. The proposed changes would expand eligible hedging relationships and better align hedge accounting outcomes with current risk management practices.
In its comment letter, BDO supported the proposed amendments, noting that they would improve operability, reflect current market practices, and better align accounting outcomes with entities’ risk management activities. BDO also supported the proposed transition guidance and believes that the amendments can be implemented without significant cost or complexity.