FASB to consider adding OIS rate as hedge accounting benchmark
The Financial Accounting Standards Board (FASB) will consider adding the federal funds rate to the benchmark interest rates allowed in its fair value accounting regime, following industry calls for the rules to be updated to reflect the pivotal role overnight interest rates have assumed in over-the-counter derivatives markets since the financial crisis.
At the next meeting of the FASB's Emerging Issues Task Force (EITF) on January 17, the body will discuss for the first time adding the rate –
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