ASU 2014-03

The objective of the amendments in this Update is to address the concerns of private company stakeholders by providing an additional hedge accounting alternative within Topic 815 for certain types of swaps that are entered into by a private company for the purpose of economically converting a variable-rate borrowing into a fixed-rate borrowing. This additional hedge accounting alternative (that is, the simplified hedge accounting approach) acts as a practical expedient to qualify for cash flow hedge accounting under Topic 815 if certain conditions are met.