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    • j.

      If the hedged transaction is the forecasted purchase or sale of a financial asset or liability (or the interest payments on that financial asset or liability) or the variable cash inflow or outflow of an existing financial asset or liability, the designated risk being hedged is any of the following:

      • 1.

        The risk of overall changes in the hedged cash flows related to the asset or liability, such as those relating to all changes in the purchase price or sales price (regardless of whether that price and the related cash flows are stated in the entity’s functional currency or a foreign currency)

      • 2.

        The risk of changes in its cash flows attributable to changes in the designated benchmark interest rate (referred to as interest rate risk)

      • 3.

        The risk of changes in the functional-currency-equivalent cash flows attributable to changes in the related foreign currency exchange rates (referred to as foreign exchange risk)

      • 4.

        The risk of changes in its cash flows attributable to all of the following (referred to as credit risk):

        • i.

          Default

        • ii.

          Changes in the obligor’s creditworthiness

        • iii.

          Changes in the spread over the benchmark interest rate with respect to the hedged item’s credit sector at inception of the hedge.

    • k.

      The item is not otherwise specifically ineligible for designation (see paragraph 815-20-25-43).

  • 57.

    Amend paragraph 820-10-15-2, with a link to transition paragraph 958-805-

65-1, as follows:

820-10-15-2 The guidance in the Fair Value Measurements and Disclosures Topic does not apply as follows:

a.

Under accounting

principles that address share-based

payment

transactions (see Topic 718 and Subtopic 505-50)

b.

Under

Sections,

Subtopics,

or

Topics

that

require

or

permit

measurements that are similar to fair value but that are not intended to measure fair value, including both of the following:

1.

Sections, Subtopics, or Topics that permit measurements that are based on, or otherwise use, vendor-specific objective evidence of fair value, which include the following:

i. ii

.

Subtopic 985-605 Subtopic 605-25.

2.

Topic 330.

c.

Under accounting principles that address fair value measurements for purposes of lease classification or measurement under Topic 840. This scope exception does not apply to assets acquired and liabilities assumed in a business combination or an acquisition by a not-for- profit entity [FAS 157, paragraph 2, sequence 4.2] that are required

95

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