|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:
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,
an impairment standard may be possible sometime in 2014.
- Classification and measurement
|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
- June 11, 2013 FASB comment letter on the Proposed Accounting Standards Update, Recognition and Measurement of Financial Assets and Financial Liabilities
- May 31, 2013, comment letter on Financial Instruments—Credit Losses
- September 30, 2010 FinREC comment letter to FASB regarding the Exposure Draft of the Proposed Accounting Standards Update - Accounting for Financial Instruments and Revisions to the Accounting for Derivative Instruments and Hedging Activities (the ED)