The FASB has issued ASU 2019-04 – Codification Improvements to Topic 326, Financial Instruments – Credit Losses; Topic 815, Derivatives and Hedging; and Topic 825, Financial Instruments. The ASU was issued to make clarifications and minor corrections to several recently issued financial instruments standards.

The ASU addresses 22 specific issues identified by the FASB and stakeholders. The amendments include new policy elections and practical expedients, specifically related to presentation and disclosure of accrued interest in the context of credit losses, corrections of cross references and other inconsistencies, added language to clarify ambiguities, and revisions of certain illustrations to more clearly align to the guidance. The FASB indicated that these items are generally not expected to have a significant effect on current accounting practice.

The ASU provides a detailed discussion of the effective dates and transition requirements as these provisions vary by topic.

The full text of ASU 2019-04 is available here.

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