“Absent this guidance, companies would have had to forecast when the derivative and its hedged item are going to transition to SOFR, and those might be at different times, and those are very judgmental, very subjective considerations,” [Rob Anderson, a CPA at Chatham Financial in Kennett Square, Pennsylvania] said. “The results of what guess that you make about that timing could drive whether your hedging relationship qualifies or not. And so FASB is wiping that away saying ‘you don’t have to consider that.’ They’re making it very easy for hedge accounting to continue.”
