RSM’s guide addresses the accounting for certain investments in equity and debt securities, loans and other receivables after the adoption of Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, including subsequently issued ASUs that amended and clarified that new guidance. Among other FASB Accounting Standards Codification (ASC) topics, this guide addresses:
- Accounting for equity securities under ASC 321 (including certain options and forward contracts to purchase equity securities)
- Accounting for debt securities under ASC 320 (including certain options and forward contracts to purchase debt securities)
- Recognition of credit losses on available-for-sale debt securities under ASC 326-30
- Accounting for loans and other receivables under ASC 310
- Recognition and measurement of credit losses on financial assets measured at amortized cost and off-balance-sheet credit exposures under ASC 326-30
- Application of the fair value option under ASC 815-10 and ASC 825-10
- Presentation and disclosure considerations for the topics outlined above
A summary of the significant changes made in this November 2024 edition of RSM’s A Guide to Accounting for Investments, Loans and Other Receivables can be found in Appendix C of the guide.
