FASB makes minor adjustments to financial instruments rules

By Ken Tysiac

FASB issued clarifications and minor improvements Thursday to its recently issued accounting standards for credit losses, hedging, and recognition and measurement.

The numerous amendments are included in Accounting Standards Update No. 2019-04, Codification Improvements to Topic 326, Financial Instruments — Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.

The amendments are designed to clarify, correct errors in, or improve FASB’s Accounting Standards Codification, making it easier to understand and apply. FASB has been working with interested parties to get feedback and address questions on its financial instruments standards, including the rules for credit losses and derivatives and hedging.

“Through these interactions, the FASB identified areas of the guidance that require clarification and correction,” FASB Chairman Russell Golden said in a news release. “The amendments in the ASU address those areas.”

The various amendments in the update have different effective dates that are described in detail in the standard update.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.

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