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FASB Revises SEC Guidance Within Codification

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The FASB has issued ASU 2018-04, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273. The purpose of the ASU is to align SEC guidance in the codification with the revised provisions for the accounting for other-than-temporary impairment set forth in ASU 2016-01 – Recognition and Measurement of Financial Assets and Financial Liabilities.
April 2, 2018

The FASB has issued ASU 2018-04, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273. The purpose of the ASU is to align SEC guidance in the codification with the revised provisions for the accounting for other-than-temporary impairment set forth in ASU 2016-01 – Recognition and Measurement of Financial Assets and Financial Liabilities.

ASU 2016-01 established new rules that do not allow the presentation of changes in fair value of investments in equity securities in other comprehensive income. ASU 2018-04 supersedes previous SEC guidance that provided the SEC staff’s views on how to evaluate the appropriate treatment for the change in fair value of investments in equity securities as it is no longer relevant. The changes are immediately effective. The full text of ASU 2018-04 is available here.

 

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