FASB issued Thursday, Oct. 15, an Accounting Standard Update (ASU) that clarifies an entity’s accounting responsibilities related to callable debt securities.
ASU 2020-08 states that an entity should reevaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period.
The standard is not expected to have a significant effect on current practice or create a large administrative cost for most entities. The amendments instead make FASB’s Accounting Standards Codification easier to understand and apply. Learn more.