United States

Financial instruments: FASB standard on recognition and measurement

WHITE PAPER

Download white paper

Updated April 2018

Our white paper, Financial instruments: FASB standard on recognition and measurement, provides an in-depth analysis of Accounting Standards Update (ASU) 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, as clarified by ASU 2018-03, Technical Corrections and Improvements to Financial Instruments —Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 began coming into effect on January 1, 2018 for calendar year public business entities and provides for early adoption.

Our white paper analyzes the changes made by ASU 2016-01, as clarified by ASU 2018-03, to existing guidance in the following areas:  

  • Measurement of equity securities
  • Valuation allowance for deferred tax assets associated with available-for-sale debt securities
  • Recognition of changes in fair value of liabilities attributable to instrument-specific credit risk 
  • Financial instrument disclosure requirements 

In addition, our white paper outlines the effective date and transition provisions and discusses how to plan ahead for implementation. It concludes with a discussion on convergence and a chart that provides a comparison of current U.S. generally accepted accounting principles to ASU 2016-01 (as clarified by ASU 2018-03) and International Financial Reporting Standards 9, Financial Instruments.

AUTHORS


How can we help you?

To discuss how our team can help your business, contact us by phone 800.274.3978 or

EMAIL US