FASB published a summary of the Emerging Issues Task Force, or EITF, meeting that was held on November 07, 2019. The meeting included discussions on clarifying the interactions among Topic 321 on investments in equity securities, Topic 323 on investments on equity method and joint ventures, and Topic 815 on derivatives and hedging.
The Task Force reached a consensus that an entity should consider observable transactions that would require the investor to either apply or discontinue the equity method of accounting for applying the measurement alternative under Topic 321, immediately before applying or on discontinuing the equity method. The Task Force also reached a consensus that, for applying paragraph 815-10-15-141(a), an entity should not consider whether, on the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method or the fair value option in accordance with Topic 825 on financial instruments. The Task Force also reached a consensus on other items related to transition, transition disclosures, special consideration for nonpublic entities, effective date, and early adoption.
Related Link: Meeting Update
Keywords: Americas, US, Accounting, Banking, Securities, Derivatives and Hedging, Financial Instruments, Topic 321, Topic 815, Topic 323, FASB
Previous ArticleEC Rule on Calculation of Technical Provisions Under Solvency II
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.