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November 19, 2018

FASB proposed an Accounting Standards Update to clarify and improve areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement. Comment period on the proposal ends on December 19, 2018. The proposed update is part of the ongoing agenda of FASB that is focused on improving the FASB Accounting Standards Codification® and correcting its unintended application.

The amendments in this proposed update relate to Topics 321, 326, and 815; they represent changes to clarify, correct errors in, or improve, the Codification. The proposed amendments would make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. The update summarizes the proposed amendments, alongside the description of the area of improvement. The amendments would apply to all reporting entities within the scope of the affected accounting guidance. This update specifies the following transitional arrangements:

  • Amendments to Topic 326 and the related codification improvements to Update 2016-13. For entities that have not yet adopted the amendments in Update 2016-13 as of the issuance date of a final Update, the effective dates and transition requirements for the proposed amendments related to Update 2016-13 would be the same as the effective dates and transition requirements in Update 2016-13. For entities that have adopted the amendments in Update 2016-13 as of the issuance date of a final Update of these proposed amendments, FASB will determine the effective date and transition requirements for those proposed amendments after it considers stakeholder feedback on this proposed Update.
  • Amendments to Topic 815 and the related codification Improvements to Update 2017-12 and other hedging items. For entities that have not yet adopted the amendments in Update 2017-12 as of the issuance date of a final Update of these proposed amendments, the effective dates and transition requirements for the proposed amendments to Topic 815 would be the same as the effective dates and transition requirements in Update 2017-12. For entities that have adopted the amendments in Update 2017-12 as of the issuance date of a final Update of these proposed amendments, the effective date would be as of the earlier of the beginning of the first quarterly period (if applicable) or first annual period after the issuance date of the final Update. For those entities, early adoption would be permitted, including adoption on any date on or after the issuance of a final Update.
  • Amendments to Topic 321 and the related codification improvements to Update 2016-01. For entities that have not yet adopted the amendments in Update 2016-01 as of the issuance date of a final Update of these proposed amendments, the effective dates and transition requirements for the proposed amendments related to Update 2016-01 would be the same as the effective dates and transition requirements in Update 2016-01. For entities that have adopted the amendments in Update 2016-01 as of the issuance date of a final Update of these proposed amendments, FASB will determine the effective date and transition requirements for these proposed amendments after it considers stakeholder feedback on this proposed Update.

 

Related Links

Comment Due Date: December 19, 2018

Keywords: Americas, US, Accounting, Banking, Financial Instruments, Hedging, Credit Losses, IFRS 9, FASB

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