In June 2012, the FASB issued a proposal that would require companies to provide new disclosures about liquidity and interest rate risks, Financial Instruments (Topic 825): Disclosures about Liquidity Risk and Interest Rate Risk (the "ED"). The proposal calls for quantitative exhibits and qualitative disclosures about risks arising from an entity's recorded and unrecorded financial instruments and cash flow obligations. Additionally, the proposal provides separate disclosure requirements for any entity or segment defined as a "financial institution."
This Dataline looks at the proposed disclosures and offers our observations. The comment letter due date is quickly approaching. Comments are due to the FASB by September 25, 2012. Companies commenting on the ED may find this Dataline helpful in finalizing their responses.