FASB issued a standard Tuesday that makes targeted changes to existing GAAP for the recognition and measurement of financial instruments. Click on the following link from the article in the Journal of Accountancy (and the article also has a link to the new Accounting Standard): www.journalofaccountancy.com
Dave Tate, Esq. comments (San Francisco/California). Close on the heals of news of new derivative accounting and reporting rules for audit committees to oversee (see my January 2, 2016, post HERE), the FASB has issued new Accounting Standards Update No. 2016-01 for Financial Instruments. This standard covering recognition and measurement is 226 pages. Have fun reading and understanding these changes. This has been in the works for a long time – it has taken years to write – the effort began before the 2008 financial crisis. The new standard is effective for fiscal years beginning after December 15, 2017; however, audit committees and auditors already should be aware that there is a spotlight on financial instruments. Audit committees need to be on their toes on this.