Featured Product

    FASB Consults on Interactions Among Topics 321, 323, and 815

    July 30, 2019

    FASB proposed an Accounting Standards Update (ASU) to clarify interaction between the accounting standard on recognition and measurement of financial instruments and the accounting standard on equity method investments. Until August 29, 2019, stakeholders can comment on the proposed ASU, which is based on a consensus of the Emerging Issues Task Force (EITF) of FASB. The amendments in the proposed ASU would clarify the interaction of the accounting for equity securities under Topic 321 and investments under the equity method of accounting in Topic 323, along with the accounting for certain forward contracts and purchased options accounted for under Topic 815.

    The amendments in the proposed ASU would affect all entities that apply the guidance in Topics 321, 323, and 815 and either elect to apply the measurement alternative or enter into a forward contract or purchase an option to purchase securities that, on settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting. The key proposed amendments include the following:

    • Accounting for Certain Equity Securities on Application or Discontinuation of the Equity Method of Accounting—The proposed ASU would clarify that a company should consider observable transactions that require a company to either apply or discontinue the equity method of accounting under Topic 323 for the purposes of applying the measurement alternative in accordance with Topic 321, immediately before applying or on discontinuing the equity method.
    • Scope Considerations for Forward Contracts and Purchased Options on Certain Securities—The proposed ASU provides guidance on questions received about how to apply the guidance in Topic 815 on "Derivatives and Hedging" for certain forward contracts and purchased options to purchase securities that, on settlement or exercise, would be accounted for under the equity method of accounting. 

     

    Related Links

    Comment Due Date: August 29, 2019

    Keywords: Americas, US, Banking, Securities, Accounting, Derivatives and Hedging, Financial Instruments, Topic 321, Topic 815, Topic 323, Accounting Standards Update, FASB

    Related Articles
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    News

    US Agencies Propose Changes to Call Reports and Instructions

    Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.

    July 22, 2021 WebPage Regulatory News
    News

    PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker

    The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Examines Asset Encumbrance in Banking Sector

    The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Publishes Methodological Guide to Mystery Shopping

    The European Banking Authority (EBA) published a methodological guide to mystery shopping.

    July 21, 2021 WebPage Regulatory News
    News

    APRA Issues Update on Capital Reform Policy Settings for Banks

    The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.

    July 21, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Assess Continuity Planning of Market Infrastructures

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.

    July 21, 2021 WebPage Regulatory News
    News

    BoE Announces Changes to Validation Rules for Form BTL

    The Bank of England (BoE) published questions and answers (Q&A) on OSCA to BEEDS migration for statistical reporting as well a presentation from the project overview session held with statistical reporters.

    July 20, 2021 WebPage Regulatory News
    News

    BCBS Proposes Changes to Process for Reviewing G-SIB Methodology

    The Basel Committee on Banking Supervision (BCBS) is consulting on a technical amendment to the Basel Framework to reflect a new process reviewing the global systemically important bank (G-SIB) assessment methodology.

    July 20, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7281