Financial Instruments 

    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:
    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.

    AICPA Guidance and Advocacy Releases

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