FASB to vote on hedge accounting for US Libor successor
Standards body likely to approve SOFR as eligible
The US Financial Accounting Standards Board is set to vote on whether to designate the US dollar Libor replacement – the Secured Overnight Financing Rate (SOFR) – as eligible for hedge accounting, according to a source familiar with the matter.
The vote is likely to pass, as the FASB stated in August it was “prepared to add to the list of eligible benchmark rates as necessary when those rates emerge” and the list of rates available for hedge accounting treatment already includes the Libor swap
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