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The FASB recently issued amendments to the new credit losses, hedging, and recognition and measurement standards. This In depth addresses the FASB's amendments to the hedging standard.
The proposed amendments clarify certain provisions, including guidance for partial-term fair value hedges, fair value hedge basis adjustments and transition.

On April 25, 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.
ASU 2019-04 amends guidance originally introduced or amended by the following:
  • ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
  • ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities
  • ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities
This In depth addresses the amendments to the hedging guidance. Refer to our separate In depths for further detail on the impact that ASU 2019-04 had on the new credit losses guidance and the recognition and measurement guidance.
The effective date for applying the amended hedge accounting guidance introduced by ASU 2019-04 is dependent upon whether an entity has already adopted ASU 2017-12. Public business entities are required to adopt ASU 2017-12 in fiscal years, and interim periods within those years, beginning after December 15, 2018. All other entities are required to adopt ASU 2017-12 in fiscal years beginning after December 15, 2019 and interim periods beginning after December 15, 2020 with early adoption permitted.
If an entity has not yet adopted ASU 2017-12, the amendments in ASU 2019-04 must be adopted at the same time ASU 2017-12 is adopted. For entities that have already adopted ASU 2017-12, the effective date for ASU 2019-04 is as of the beginning of the first annual period beginning after April 25, 2019, the ASU's issuance date. ASU 2019-04 permits early adoption as long as an entity has adopted or is adopting ASU 2017-12 concurrently.

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