 Accounting for financial instruments has been deemed the highest
priority of both the FASB and IASB because of the role it played in the
recent financial crisis. However, it is an extremely complex area
without an easy solution making it difficult to predict what may happen
and when. The topic has been divided into the following parts:
- Impairment
- Classification and measurement
- Hedging
All entities that have financial instruments would be affected by the
proposed standard. However, the extent of the effect would depend upon
the relative significance of financial instruments to an entity’s
operations and financial position as well as the entity’s business
strategy. While the Boards are still determining stance on each,
impairment and classification and measurement may be re-exposed in Q4
2012. A final standard may be possible sometime in 2013. |
The AICPA offers guidance on the Financial Instruments Project, including:
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The FASB also maintains separate project pages with further information.
- Classification and Measurement (FASB)
- Credit Impairment (FASB)
- Hedge Accounting (FASB)
Note that the IASB no longer classifies the Financial Instrument Project as a Memorandum of Understanding issue and houses information under its project page for IFRS 9: Financial Instruments (replacement of IAS 39).
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AICPA Guidance and Advocacy Releases
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