FASB issues narrow scope improvements to financial instruments standards

FASB has issued an Accounting Standards Update (ASU) that clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement.

The amendments are designed to clarify, correct errors in, or improve FASB’s Accounting Standards Codification, making it easier to understand and apply. FASB has been working with interested parties to get feedback and address questions on its financial instruments standards, including the rules for credit losses and derivatives and hedging.

“Since issuing the financial instruments standards, including credit losses and derivatives and hedging, the FASB staff has been working with stakeholders to obtain feedback and address questions on the guidance,” stated FASB Chairman Russell Golden. “Through these interactions, the FASB identified areas of the guidance that require clarification and correction. The amendments in the ASU address those areas.”

The ASU is part of the FASB’s ongoing agenda project focused on improving the FASB Accounting Standards Codification® and correcting its unintended application.