Derivatives Implementation Group
FASB: Summary of January 26,
2000 Board Meeting Discussion on Statement 133 Implementation
Issues
Derivatives and hedging-possible amendment
of Statement 133. The Board discussed the guidance in FASB
Statement No. 133, Accounting for Derivative Instruments and
Hedging Activities, related to partial-term fair value hedges
of a portion of an asset or liability. The Board considered a
suggestion to modify Statement 133 to permit the effectiveness of a
partial-term hedge to be assessed based on the changes in interest
rates for only a specified portion of the relevant yield curve. The
Board decided that the provisions of Statement 133 should not be
modified to permit the suggested change.
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