On November 25, 2025, the FASB issued ASU 2025-09 to clarify and improve hedge accounting. The ASU enables entities to apply hedge accounting to a greater number of highly effective economic hedges in 5 areas:
- similar risk assessment for cash flow hedges,
- hedging forecasted interest payments on choose-your-rate debt instruments,
- cash flow hedges of nonfinancial forecasted transactions,
- net written options as hedging instruments, and
- foreign-currency-denominated debt instruments as hedging instrument and hedged item (dual hedge).
For public business entities, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2026, and interim periods within those annual reporting periods. For entities other than public business entities, the amendments are effective for annual reporting periods beginning after December 15, 2027, and interim periods within those annual reporting periods. Early adoption is permitted on any date on or after the issuance of this Update.
SCACPA is excited to partner with Galasso Learning Solutions and the Genuine Learning Blog for real-time A&A updates and answers for SCACPA members.
Jaclyn Veno, CPA, holds both a bachelor’s and a master’s degree in accounting from Clemson University. Before joining Galasso Learning Solutions, she held previous positions in auditing with two top 10 CPA firms. Jaclyn has extensive experience developing both staff and interns including working with overseas staff. She holds certificates in adult learning, instructional design, and training & facilitation as well as virtual learning theory from the Association for Talent Development (ATD).
