Financial instruments are pervasive across all reporting entities and even more so in the financial services sector. The FASB issued two of its three accounting for financial instruments standards in 2016: recognition and measurement and allowance for credit losses (CECL). The final standard for hedge accounting is expected to be issued the third quarter of 2017.
- Q1 2020 for calendar year-end public business entities that are SEC filers
- Q1 2021 for calendar year-end public business entities that are not SEC filers
- 2021 for calendar year-end nonpublic entities
Early application of the guidance will be permitted in 2019 for calendar year-end entities.
Is a discounted cash flow required for available for sale securities under the new financial instruments credit loss standard? Hear PwC’s Edward Lee describe this important question raised by many practitioners during application of the new standard and share his perspectives. He also addresses situations when a company has multiple positions in the same security, but classifies some as held to maturity and some as available for sale.