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FASB Proposes Changes to Financial Instruments Standards

November 20, 2018

The Financial Accounting Standards Board (FASB) issued a proposed Accounting Standards Update (PDF) that would make narrow improvements to its standards on credit losses, hedging, and recognition and measurement of financial instruments. One of the proposed changes would allow an entity to measure the allowance for credit losses on accrued interest receivable balances separately from other components of the amortized cost basis of associated financial assets and net investments in leases. Another change would permit an entity to make an accounting policy election to write off accrued interest amounts by either reversing interest income or adjusting the allowance for credit losses.