TBMA Submits Comments to the AICPA on Accounting for Certain Derivative Instruments and Hedging Activities

The Bond Market Association (TBMA) provides comments to the American Institute of Certified Public Accountants (AICPA) on a proposed statement of position issued by the Accounting Standards Executive Committee (AcSEC), Accounting for Derivative Instruments and Hedging Activities by Not-for-Profit Health Care Organizations and Clarification of the Performance Indicator, File 2850.PH. TBMA notes that certain aspects of the position would affect debt convention ratios that require the inclusion of Generally Accepted Accounting Principles (GAAP) income in their calculation. In addition, TBMA recommends that ACSEC require a realistic effective date that will give affected entities the time to revise debt agreements.

*SIFMA is the product of a merger between the Securities Industry Association (SIA) and The Bond Market Association (TBMA) in 2006.