Last week, FASB released Accounting Standards Update No. 2019-4 to clarify three of its recent standards for credit losses, hedging, and recognition and measurement of financial instruments.
The three standards were part of the financial instruments project in which FASB tried to converge its standards with the International Accounting Standards Board.
They involve a number of areas, including accrued interest, transfers between classifications or categories for loans and debt securities, and recoveries of financial assets and trade receivables that were previously written off.
The changes also clarify some questions stakeholders had brought to FASB’s attention.