Heads Up on FASB's financial instruments proposals

  • Heads Up Image

29 May 2010

On 26 May 2010, the US FInancial Accounting Standards Board issued a proposed Accounting Standards Update (ASU) for a comprehensive new model of accounting for financial assets and financial liabilities that addresses (1) recognition and measurement, (2) impairment, and (3) hedge accounting (see our News Story of 27 May for a brief overview).

Deloitte (United States) has published a 22-page edition of the Heads Up Newsletter ( (PDF 216k) that provides an analysis of the key provisions of FASB's proposals on financial instruments. The newsletter includes a section on international convergence and has five appendices:
  • Appendix A lists financial instruments that are outside the scope of the FASB's proposed ASU.
  • Appendix B includes a decision tree illustrating the proposed classification and measurement model.
  • Appendix C includes a table comparing the classification and measurement provisions of the proposed ASU with the key provisions in IFRS 9 and the IASB's tentative decisions to date regarding the accounting for financial liabilities.
  • Appendix D contains a tabular comparison of the FASB's proposed impairment model and the IASB's exposure draft on impairments (issued in November 2009).
  • Appendix E gives an overview of the FASB's proposed approach to hedge accounting.
As the newsletter says: While this is a significant amount of reading, it's all relative; it's condensed from the FASB's 214-page exposure draft.


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.