FASB recently issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides temporary, optional expedients and exceptions for applying generally accepted accounting principles to held-to-maturity securities, contracts, hedging relationships and other transactions affected by reference rate reform. This article has details on the ASU, which has an unusual effective date due to the unique nature of the London Interbank Offered Rate (LIBOR) sunset.

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