
January 26, 2021
Libor Transition Puzzle: FASB Provides Clarity, Relief to Corporates
Guidance from FASB clarifies accounting for all hedges impacted by the discounting transition.The Financial Accounting Standards Board (FASB) started 2021 by clarifying accounting guidance aimed at facilitating the transition of corporate floating-rate transactions away from the Libor reference rate. The standard setter is also expected to resume progress this year on issues it had set aside to address the Libor transition. Background. On Jan. 7, FASB issued ASU 2021-01, an accounting standards update that clarifies issues stemming from Topic 848, titled…