FASB Proposes Narrow-Scope Improvements to Financial Instruments Standards
Norwalk, CT, November 19, 2018—The Financial Accounting Standards Board (FASB) today issued a proposed Accounting Standards Update (ASU) that would clarify and improve areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement. Stakeholders are encouraged to review and provide comment on the proposal by December 19, 2018.
“Since issuing the financial instruments standards, the FASB staff has been working with stakeholders to obtain feedback and address questions on the guidance,” noted FASB Chairman Russell G. Golden. “Through these interactions, the FASB identified areas of the guidance that require clarification and correction. The amendments in the proposed ASU would address those areas.”
The proposed ASU is part of the FASB’s ongoing agenda project focused on improving the FASB Accounting Standards Codification® and correcting its unintended application.
About the Financial Accounting Standards Board
Established in 1973, the FASB is the independent, private-sector, not-for-profit organization based in Norwalk, Connecticut, that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally Accepted Accounting Principles (GAAP). The FASB is recognized by the Securities and Exchange Commission as the designated accounting standard setter for public companies. FASB standards are recognized as authoritative by many other organizations, including state Boards of Accountancy and the American Institute of CPAs (AICPA). The FASB develops and issues financial accounting standards through a transparent and inclusive process intended to promote financial reporting that provides useful information to investors and others who use financial reports. The Financial Accounting Foundation (FAF) supports and oversees the FASB. For more information, visit www.fasb.org.