The Financial Accounting Standards Board is looking for views on a proposed clarification in accounting standards meant to address different practices that are developing in accounting for certain securities.
The Accounting Standards Codification, which is the rulebook for all Generally Accepted Accounting Principles (GAAP), has relatively new rules for how to recognize and measure financial instruments. Those rules were issued in 2016 in Accounting Standards Update No. 2016-01, giving companies some new directives to measure and recognize certain instruments at fair value, which is a more complex process when some investments or securities are difficult to measure due to a lack of readily apparent market activity that can serve as a reference point.
