This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Journal entry — Repurchase agreements — The FASB decides on transition and comment period

Published on: Nov 08, 2012

At its meeting yesterday, the FASB tentatively decided to:

  • Require entities to apply the guidance in the ASU on repurchase (“repo”) agreements and similar transactions in the following manner:
    • For repo-to-maturity transactions and repo financings involving repo-to-maturity transactions that are outstanding as of the beginning of the first reporting period in which the guidance is effective, entities should record a cumulative-effect adjustment to beginning retained earnings as of the beginning of that period.
    • For all other repo agreements and similar transactions, the ASU should be applied prospectively when those transactions are entered into or modified after the effective date.
  • Require entities to disclose, as of the beginning of the first reporting period in which the guidance becomes effective, a description of the accounting change and the effect on the balance sheet.
  • Not allow early adoption of any final ASU.
  • Give the staff permission to draft a proposed ASU.
  • Expose the proposed ASU for public comment, with a comment deadline of March 29, 2013.

The Board expects to issue the proposed ASU in December 2012.

Accounting Journal Entries Image

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.