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 — FASB Concludes Deliberating Clarifications to Scope of Balance Sheet Offsetting Disclosures

Published on: Jan 09, 2013

At today’s meeting, the FASB discussed comment letter feedback received on its proposed Accounting Standards Update (ASU), Clarifying the Scope of Disclosures About Offsetting Assets and Liabilities. The FASB staff indicated that all respondents supported the proposal, and the Board directed the staff to draft a final ASU. To respond to issues raised in some comment letters, the Board also:

  • Clarified the definition of “derivative instrument” by agreeing that only derivative instruments that are accounted for in accordance with FASB Accounting Standards Codification (ASC) Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, would be in the scope of the final ASU (thereby excluding instruments that meet the definition of a derivative but that qualify for one of the ASC 815 scope exceptions).
  • Reaffirmed that (1) the offsetting disclosure requirements as amended would be effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods and (2) retrospective application would be required for all comparative periods presented.1


[1] The effective date and transition are the same as those in FASB Accounting Standards Update No. 2011-11, Disclosures About Offsetting Assets and Liabilities.

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.