Featured Product

    FASB Proposes Accounting Standards Update on Codification Improvements

    October 03, 2017

    FASB published an Exposure Draft that proposed an Accounting Standards Update on codification improvements, which include codification updates for technical corrections, clarifications, and other minor improvements. Comments are due by December 04, 2017. The “Amendments to the FASB Accounting Standards Codification” section explains the reason for each proposed amendment in this Update and contains a chart identifying the Topics, paragraphs, and the nature of amendments being proposed. The amendments in this proposed Update would affect a wide variety of Topics in the Codification, including Amendments to Subtopic 815-10 on Derivatives and Hedging and Amendments to Subtopic 820-10 on Fair Value Measurement.

    Amendments to Subtopic 815-10, Derivatives and Hedging. The amendments in this proposed update would clarify the circumstances in which derivatives may be offset. Under certain conditions, derivatives may be offset if three of the four criteria in paragraph 210-20-45-1 are met. One of the criteria—the intent to set off—may not be required to offset derivative assets and liabilities for certain amounts arising from derivative instruments recognized at fair value and executed with the same counterparty under a master netting agreement. The guidance in paragraph 815- 10-45-4 is potentially misleading because it specifically references the criteria in paragraph 210-20-45-1, which states that derivatives may only be offset when all four of the conditions in paragraph 210-20-45-1 are met. The proposed amendments would (1) modify the reference in paragraph 815-10-45-4 so that the reader is directed to the full guidance of Subtopic 210-20, Balance Sheet— Offsetting, and (2) clarify the guidance in paragraph 815-10-45-5 for the exception of the intent to set off criteria for derivatives.

    Amendments to Subtopic 820-10 on Fair Value Measurement. The amendments in this proposed update would clarify the Board’s decisions about the measurement of the fair value of a liability or instrument classified in a reporting entity’s shareholder’s equity from the perspective of a market participant that holds an item identical to an asset at the measurement date. The amendments in this proposed update would also revise the current guidance to allow portfolios of financial instruments and nonfinancial instruments accounted for as derivatives in accordance with Topic 815 to use the portfolio exception to valuation. Additionally, the amendment to paragraph 820-10-50-2(bbb)(2) in this proposed update would replace indefinite deferral guidance that is currently in paragraph 820-10-65-9 with a disclosure exemption in paragraph 820-10-50-2(bbb)(2) and paragraphs that explicitly cite that paragraph. The proposed amendments are not intended to substantively change the application of generally accepted accounting principles or GAAP. However, it is possible that the proposed amendments may result in a change to the existing practice for some entities.

    The provisions of this Exposure Draft, if finalized as proposed, would require changes to the U.S. GAAP Financial Reporting Taxonomy (Taxonomy). After the FASB has completed its deliberations and issued a final Accounting Standards Update, the proposed amendments to the Taxonomy will be made available for public comment and finalized as part of the annual release process.

     

    Related Link: Exposure Draft on Codification Improvements (PDF)

    Comment Due Date: December 04, 2017

    Keywords: Americas, US, Banking, Securities, Insurance, Accounting, Derivatives and Hedging, Codification Improvements, Fair Value Measurement, Taxonomy, FASB

    Related Articles
    News

    SEC Finalizes Capital and Margin Requirements for Security-Based Swaps

    SEC adopted a package of rules and rule amendments to establish capital, margin, and segregation requirements for security-based swaps, under Title VII of the Dodd-Frank Act.

    August 22, 2019 WebPage Regulatory News
    News

    ECB Revises Prudential Provisioning Expectations for New NPEs

    ECB is revising its supervisory expectations for prudential provisioning of new non-performing exposures (NPEs) specified in the “Addendum to the ECB Guidance to banks on non-performing loans” (Addendum)

    August 22, 2019 WebPage Regulatory News
    News

    CFTC Proposes to Revise Information Collection on Margin Requirements

    CFTC is requesting comments on the burdens associated with certain aspects of the Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants (final rule).

    August 21, 2019 WebPage Regulatory News
    News

    FASB to Delay Effective Date for Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant all insurance companies that issue long-duration contracts, such as life insurance and annuities, additional time to apply the standard that addresses this area of financial reporting.

    August 21, 2019 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.9

    EBA published phase 2 of its technical package on the reporting framework 2.9, which includes validation rules, Data Point Model (DPM) data dictionary, and XBRL taxonomies.

    August 21, 2019 WebPage Regulatory News
    News

    FSB Publishes Responses to Its Consultation Related to SME Financing

    FSB published responses received to the consultation on a report on the evaluation of the effects of financial regulatory reforms on small and medium-sized enterprise (SME) financing.

    August 21, 2019 WebPage Regulatory News
    News

    APRA Revises Related Entities Standard for Banks

    APRA published a strengthened prudential standard APS 222 on associations with related entities, with the aim to mitigate contagion risk within banking groups.

    August 20, 2019 WebPage Regulatory News
    News

    EBA and ESMA Issue Joint Response to EC Letter on Crypto-Assets

    EBA and ESMA issued a joint response to the EC letter, from July 19, 2019, on crypto-assets.

    August 20, 2019 WebPage Regulatory News
    News

    FSB on Responses to Consultation on Wind-Down of Trading Portfolios

    FSB published responses received to the consultation on the solvent wind-down of the derivatives and trading book portfolio of a global systemically important bank (G-SIB).

    August 19, 2019 WebPage Regulatory News
    News

    FSB Publishes Responses to Consultation on Resolvability Disclosures

    FSB published responses received to the consultation on disclosures for resolution planning and resolvability of banks.

    August 19, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3681