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Since the inception of derivatives and hedge accounting, the standard setters have been challenged to provide the information investors need to make informed decisions.
The Financial Accounting Standards Board (FASB) is trying once again, through ASU 2017-12: Targeted Improvements to Accounting for Hedging Activities to address concerns that current hedge accounting standards do not permit an entity to properly recognize the economic results of its hedging strategies.
Set the dial back to 1998 when FASB issued Financial Accounting Statement (FAS) No. 133, Accounting for Derivative Instruments and Hedging Activities to establish accounting and reporting standards for derivative instruments. It required the fair value recognition of all derivatives as either assets or liabilities on the balance sheet.
Read the Bloomberg BNA blog HERE.