FASB issued technical corrections and improvements Wednesday to its financial instruments standard on recognition and measurement of financial assets and liabilities that was originally issued in 2016.
The original standard, Accounting Standards Update (ASU) No. 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, retained the current framework for financial instruments accounting but made targeted improvements.
The amendments issued Wednesday include items brought to FASB’s attention by stakeholders. The amendments consist of clarifications for six issues that had the potential to create confusion for financial statement preparers.
The technical corrections take effect for fiscal years beginning after Dec. 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. Public business entities with fiscal years beginning between Dec. 15, 2017, and June 15, 2018, are not required to adopt the amendments until the interim period beginning after June 15, 2018.
Public business entities with fiscal years beginning between June 15, 2018, and Dec. 15, 2018, are not required to adopt these amendments before adopting the amendments in ASU No. 2016-01. For all other entities, the effective date is the same as the effective date in ASU No. 2016-01.
All entities may adopt these amendments early for fiscal years beginning after Dec. 15, 2017, including interim periods within those fiscal years, as long as they have adopted ASU No. 2016-01.
— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.