Recently issued FASB standards on credit losses, hedging, and recognition and measurement would be amended under new, narrow-scope changes proposed by the board.
Proposed Accounting Standards Update Codification Improvements — Financial Instruments clarifies 23 issues in FASB's standards for accounting for credit losses, hedging, and recognition and measurement.
"Since issuing the financial instruments standards, the FASB staff has been working with stakeholders to obtain feedback and address questions on the guidance," FASB Chairman Russell Golden said in a news release. "Through these interactions, the FASB identified areas of the guidance that require clarification and correction."
The proposed amendments are not expected to have a significant effect on current accounting practice or to create a significant administrative cost for most entities.