On Wed. May 26, the Financial Accounting Standards Board released two proposals (also called Exposure Drafts or EDs) of proposed Accounting Standards Updates (proposed ASUs) on two related projects:
- Proposed ASU: Accounting for Financial Instruments and Revisions to the Accounting for Derivative Instruments and Hedging Activities - Financial Instruments (Topic 825) and Derivatives and Hedging (Topic 815), and
- Proposed ASU: Comprehensive Income (Topic 220): Statement of Comprehensive Income
As noted in FASB's press release:
A briefing document about the financial instruments proposal entitled FASB In Focus is also available at the website, along with a “podcast” featuring an in-depth audio interview with FASB Chairman Robert Herz about financial instruments. The FASB will also be hosting a livewebcaston the financial instruments proposal on June 30.
The comment deadline on the two proposals is September 30. FASB seeks input from all of its constituents, including preparers, auditors, investors and others. Read more commentary on the fair value proposal here.
IASB Releases Proposal on Other Comprehensive Income (OCI)
Meanwhile, the International Accounting Standards Board released a companion proposal that would amend IAS 1, for how items in OCI are treated. The Exposure Draft, entitled Presentation of Items of Other Comprehensive Income - Proposed Amendments to IAS 1, has a comment deadline of September 30.