On October 5, ISDA’s Accounting Committee responded to a consultation issued by the Financial Accounting Standards Board (FASB) seeking views from all stakeholders on the effect of derivative contract novations on existing hedge-accounting relationships. ISDA welcomes the proposal on the novation of derivatives and hedge accounting. We agree with the exposure draft’s conclusion that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument in a hedging relationship under Topic 815, should not, in and of itself, require the de-designation of the relationship, provided that all other hedge-accounting criteria continue to be met. The ability to continue a hedge-accounting relationship under Topic 815 upon novation of a designated derivatives contract would help eliminate diversity in practice, simplify the application of hedge accounting, and provide more decision-useful information to users of financial statements.
Documents (1) for ISDA response to the FASB exposure draft on the effect of derivative contract novations
Latest
U.S. Federal Holidays on December 24 and 26, 2025
Pursuant to an Executive Order of the President of the United States, December 24 and December 26 have been designated as federal holidays for U.S. federal government purposes. The designation of such dates as U.S. federal holidays is not expected to affect...
ISDA Publishes SPS Matrix Version 1.02
On December 19, 2025, ISDA published an updated version (v1.02) of the ISDA Digital Asset Derivative Definitions Settlement Price Source Matrix (‘SPS Matrix”). The SPS Matrix contains a list of Settlement Price Sources (SPSs) and related terms that parties can...
From Milestone to Modernization
We’re coming to the end of an exceptionally busy year at ISDA, in which we celebrated our 40th anniversary and doubled down on our enduring commitment to safe and efficient derivatives markets. Reflecting on ISDA’s achievements since 1985, it’s clear...
Response on ASIC Derivative Transaction Rules
On December 3, ISDA submitted a response to the Australian Securities and Investments Commission (ASIC) consultation on the remake of the ASIC Derivative Transaction Rules (Clearing) 2015, which are due to sunset on April 1, 2026. ASIC proposed to remake...