Banks Push US Accounting Board to Streamline Hedging Guidance

The banking industry is calling on the US accounting standard-setter to put improvements to notoriously complex hedge accounting on its to-do list.

Public feedback on the Financial Accounting Standards Board’s agenda outreach effort indicates that risk management and hedge accounting are top priorities, including for banking groups, FASB Deputy Technical Director Rosemarie Sangiuolo said Tuesday during remarks at a banking conference in Maryland held by AICPA & CIMA, professional bodies for accountants.

Businesses looking to minimize exposure to swings in interest rates or raw material prices buy futures, options, or swaps to offset risks. Some strategies can qualify ...