NORWALK, Conn. (1/8/16)--An accounting standards update issued this week by the Financial Accounting Standards Board (FASB) is intended to improve the recognition and measurement of financial instruments.
The update affects public and private companies, not-for-profit organizations and employee benefit plans that hold financial assets or owe financial liabilities.
The new guidance makes improvements to existing generally accepted accounting principles by:
The update will take effect for public companies for fiscal years starting after Dec. 15, 2017. For private companies, not-for-profit organizations and employee benefit plans, the standard becomes effective for fiscal years beginning after Dec. 15, 2018.