In addition to finalizing and setting a 2019 effective date for a new standard on leasing accounting, the Financial Accounting Standards Board has determined public companies will be required to apply new rules on classification and measurement of financial instruments beginning in 2018 and impairment of financial instruments in 2019.
FASB has wrapped up its long-running work on changes to the way companies will classify and measure financial instruments and has directed its staff to prepare the final language of the Accounting Standards Update for a board vote. The standard will take effect for public and private companies for fiscal years beginning after Dec. 15, 2017, including interim periods within those annual periods. Not-for-profits and employee benefit plans within scope will be expected to apply the new approach for fiscal years beginning after Dec. 15, 2018, and interim periods after Dec. 15, 2019.
