Recently issued FASB standards on credit losses, hedging, and recognition and measurement would be amended under narrow-scope changes the board proposed Monday.
Proposed Accounting Standards Update Codification Improvements — Financial Instruments invites public comment on the proposal by Dec. 19. Comments can be made on FASB’s website.
“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 proposal clarifies a total of 23 issues in FASB’s standards for accounting for credit losses, hedging, and recognition and measurement.
The proposed amendments issued Monday are not expected to have a significant effect on current accounting practice or to create a significant administrative cost for most entities.
— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.