FASB published a summary of the tentative decisions taken at its Board meeting in August 2018. The key topics on which tentative decisions were made include implementation of credit losses in Financial instruments and inclusion of the overnight index swap rate based on the secure overnight financing rate as a benchmark interest rate for hedge accounting purposes.
With respect to the Accounting Standards Update on Derivatives and Hedging (Topic 815), the Board has decided to make certain changes and has concluded that it has received sufficient information and analysis to make an informed decision on the issues presented and that the expected benefits of the amendments justify the expected costs. Thus, the Board directed the staff to draft a final Accounting Standards Update for vote by written ballot. Additionally, the Board decided that no amendments to Accounting Standards Update No. 2016-13, titled Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, are necessary for issues raised by stakeholders related to capitalized interest and refinancing and loan prepayments. However, the Board did decide to amend the guidance in certain other areas.
Keywords: Americas, US, Banking, Accounting, IFRS 9, Accounting Standards Update, Tentative Decisions, Derivatives and Hedging, Topic 815, Topic 326, FASB