Private Company Council (PCC) and their communications to the FASB, along with their purpose and proposition related to hedge accounting and these corresponding pros and cons. You have this information correct and excellent summary of your takeway from what you learned and retained. A pleasure to review. Yes, this update for private companies using the simplified hedge accounting method makes three simplifications for hedge accounting: The company can elect on a swap-by-swap basis to apply this standard, and they can assume no ineffectiveness with the swap, which greatly simplifies the annual calculations. The company can measure each swap at settlement value instead of fair value. Settlement value is calculated as the present value of future cash flows. Fair value is the present value of future cash flows, plus an evaluation of the likelihood of nonperformance by the relevant parties. Documentation for the swap doesnt have to be in place until the date that the financial statements are issued. Also, interesting to note is that this simplification may not be appropriate for private companies considering going public or which may be acquired by a public company. In either of those situations, the companys financials will have to be restated to be in agreement with the accounting standards used by public companies.

So, with this criteria for the simplified method that was designed to fit the most common circumstances for swap arrangements in private companies, what must be met for the duration of the debt being hedged? Any thoughts here?