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FASB makes technical corrections to guidance on financial instruments

  • FASB document Image

Feb 28, 2018

The FASB has issued Accounting Standards Update (ASU) No. 2018-03, “Technical Corrections and Improvements to Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which makes minor changes to the Board’s January 2016 ASU, “Recognition and Measurement of Financial Assets and Financial Liabilities.”

The technical corrections affect the following aspects of the ASU:

  • Equity securities without a readily determinable fair value — discontinuation.
  • Equity securities without a readily determinable fair value — adjustments.
  • Forward contracts and purchased options.
  • Presentation requirements for certain fair value option liabilities.
  • Fair value option liabilities denominated in a foreign currency.
  • Transition guidance for equity securities without a readily determinable fair value.

The ASU notes that “[t]he amendments in this Update are of a similar nature to the items typically addressed in the Codification improvements project” and that these technical corrections are being issued separately to “increase stakeholders’ awareness of the amendments and to expedite the improvements.”

For more information, see the ASU on the FASB’s Web site.

On March 20, 2018, the FASB issued GAAP Taxonomy improvements and implementation guidance related to this ASU. For more information, see the taxonomy improvements page on the FASB's Web site.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.