FASB News

Editorial analysis of the latest FASB developments — ASUs, exposure drafts, standard amendments, and financial reporting guidance.

ASC 815Hedge AccountingDerivatives

FASB Proposes Targeted Improvements to Hedge Accounting Guidance

On June 17, 2026, FASB issued a proposed Accounting Standards Update with targeted improvements to hedge accounting guidance under ASC 815, Derivatives and Hedging. The exposure draft responds to practice feedback gathered since the landmark ASU 2017-12 reforms and proposes refinements to simplify documentation requirements, clarify effectiveness assessment, and address specific hedge relationship types that have presented implementation challenges.

17 Jun 2026

ASC 715Pension AccountingCash Balance Plans

FASB Proposes New Guidance for Market-Return Cash Balance Pension Plans

On June 10, 2026, FASB issued a proposed Accounting Standards Update to improve accounting guidance for market-return cash balance plans under ASC 715, Compensation — Retirement Benefits. These defined benefit pension plans credit participants' hypothetical accounts with interest based on market returns — a feature that creates specific actuarial and accounting complexities that the proposal aims to resolve.

10 Jun 2026

FASB Board DecisionsASC 942Fair Value

FASB Board Decisions: Fair Value Election for Commodity Inventories at Banks

FASB's May 27, 2026 board meeting produced final tentative decisions on the Accounting for Commodities project: banks and other Topic 942 entities will be able to elect fair value measurement for tangible commodity inventories on a per-commodity-type basis. The board directed staff to draft a proposed ASU with a 45-day comment period. A new project on mortgage servicing rights recapture was also added to the technical agenda.

27 May 2026

ASC 818Environmental CreditsESG

FASB Issues ASU on Accounting for Environmental Credits Under New Topic 818

FASB issued an Accounting Standards Update under a new Topic 818 to improve financial accounting for environmental credits and environmental credit obligations. The guidance covers entities that generate, purchase, receive, or have regulatory compliance obligations settleable with environmental credits. FASB Chair Richard R. Jones stated the ASU adds clarity that previously did not exist in this area.

19 May 2026

FASB Board DecisionsASC 946Fair Value

FASB Board Decisions: New Projects on Fair Value, Private Credit, and Equity Method

At its May 13, 2026 board meeting, FASB added two new projects scoped to investment companies under Topic 946: one on fair value measurement of equity securities subject to contractual sale restrictions, and one on private credit disclosures. The board also continued deliberations on targeted improvements to the equity method of accounting under Topic 323.

13 May 2026

ASC 505Preferred StockPIK Dividends

FASB Issues ASU on PIK Dividends for Equity-Classified Preferred Stock

FASB issued an Accounting Standards Update addressing the initial measurement of paid-in-kind (PIK) dividends on equity-classified preferred stock under Topic 505. The update, developed from an EITF recommendation, aims to standardize practice across issuers. FASB Chair Richard R. Jones noted the ASU will enhance the comparability of financial information among companies that issue PIK dividends.

23 Apr 2026