FASB proposes narrow-scope financial instruments accounting changes

By Ken Tysiac

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.

Where to find November’s flipbook issue

The Journal of Accountancy is now completely digital. 

 

 

 

SPONSORED REPORT

Get Clients Ready for Tax Season

This comprehensive report looks at the changes to the child tax credit, earned income tax credit, and child and dependent care credit caused by the expiration of provisions in the American Rescue Plan Act; the ability e-file more returns in the Form 1040 series; automobile mileage deductions; the alternative minimum tax; gift tax exemptions; strategies for accelerating or postponing income and deductions; and retirement and estate planning.