Financial Accounting


Delay on Derivatives Standard

FASB announced it would defer implementation of its new rules for accounting for derivatives. The effective date for FASB Accounting Statement no. 133, Accounting for Derivative Instruments and Hedging Activities will be delayed to fiscal years beginning after June 15, 2000.

Statement no. 133 requires companies to report in their earnings any changes in the value of derivatives that don't balance out a loss or gain on the instrument they are supposed to hedge. The standard, which was issued in June 1998 after a lengthy delay, applies to quarterly and annual financial statements.

This time FASB postponed implementation of Statement no. 133 as a response to the many comments from companies requesting more time to modify their information systems and to learn how to apply the new derivative standard.

"We have received a number of requests from constituents asking for a one-year delay, based on unforeseen problems with getting systems up to speed for year 2000 considerations," said FASB Chairman Edmund L. Jenkins. "Others had questions about applying Statement no. 133 in practice and the need to educate their people internally about the new standard's requirements."

SPONSORED REPORT

Tax reform complicates year-end tax planning

Get your clients ready for tax season with these year-end tax planning strategies, which address how to make the most of recent tax law changes, such as the new deduction for qualified business income and the cap on the deductibility of state and local taxes.

VIDEO

What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.