FASB Proposes Updates to
Reference Rate Reform Guidance

The FASB has proposed that reference rate relief guidance period be extended and to also consider SOFR Swap Rates as benchmark interest rates.

The proposal, if accepted, would defer the sunset date for providing relief during the transition away from LIBOR from December 31, 2022 to December 31, 2024. Additionally, the FASB proposed amendments to the definition of the SOFR Swap Rate to include other versions of SOFR, such as SOFR term.

The announcement can be read here.
The proposed ASU can be read here.

About Principia Partners
Principia Partners LLC provides solutions for derivative and fixed income operations. Global financial institutions and independent asset managers have used the award-winning Principia Analytic System since 1995 to unify valuations, portfolio management, risk surveillance, hedge accounting and operational control across the breadth of fixed income and derivative products. In 2015, Principia launched its Analytic Service, pasVal, to make its award-winning pricing and analytics available to an even broader range of businesses.