FASB statement No. 159 is the latest pronouncement to be issued, and it is
elective in nature but it represents the direction FASB is taking towards principle
based standards and emergence with International Accounting Standards.
FASB Statement No. 159 is effective for fiscal years beginning on or after
November 15, 2007 but does allow for early adoption within the first 120 days of a
company’s fiscal year. The objectives of the statement were to ease the hedge
accounting burden and reduce the volatility of measuring financial assets. The
statement was also a way to introduce fair value accounting without making the
election mandatory.
The statement allows for an asset by asset election, but the election must be
made at the time the instrument is recognized and the election is irrevocable. In
order to make the election, a company must be in full compliance with statement
number 157. To learn more about this statement, past and upcoming statements
from the FASB, contact Christopher.Hourigan@accuritysolutions.com or read the
entire FASB statement No. 159 here.
elective in nature but it represents the direction FASB is taking towards principle
based standards and emergence with International Accounting Standards.
FASB Statement No. 159 is effective for fiscal years beginning on or after
November 15, 2007 but does allow for early adoption within the first 120 days of a
company’s fiscal year. The objectives of the statement were to ease the hedge
accounting burden and reduce the volatility of measuring financial assets. The
statement was also a way to introduce fair value accounting without making the
election mandatory.
The statement allows for an asset by asset election, but the election must be
made at the time the instrument is recognized and the election is irrevocable. In
order to make the election, a company must be in full compliance with statement
number 157. To learn more about this statement, past and upcoming statements
from the FASB, contact Christopher.Hourigan@accuritysolutions.com or read the
entire FASB statement No. 159 here.
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