January 12, 2023
FASB Extends Reference Rate Transition Guidance
Back in December, FASB announced an Accounting Standards Update that extends the period of time preparers can utilize the guidance in Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. That ASU provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The guidance had a sunset date of December 31, 2022, but now FASB has extended that sunset date to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848.
– Dave Lynn