Editing Financial Accounting Standards Board (section)

=== Derivative accounting ===
Upon electing to use hedge accounting, companies must establish a method to evaluate the effectiveness of hedging a derivative, and a method to determine the ineffectiveness of a hedge.<ref name="riskex">{{cite web|title=FAS 133 Summary – Advisors on Derivatives & Hedge Accounting for the Energy Sector ~ Disclosure Compliance FAS 133 Consultants. Summary FAS 133 hedge effectiveness testing consulting. Overview Embedded Derivatives Basis Hedging IAS 39 Training Consultant. Mark-to-market accounting, Interest Rates, FAS 133 Foreign Exchange Currency FX|url=http://riskex.com/fas133-summary.htm|website=riskex.com|access-date=1 November 2017}}</ref> The FASB further improved derivative accounting in 2017 with simplification measures included in ASU 2017–12.<ref name="ASU 2017-12">{{cite news|title=Tax & Accounting Update|url=https://www.cpajournal.com/2018/04/23/tax-accounting-update-17/|access-date=26 April 2018|work=The CPA Journal|date=23 April 2018}}</ref>