In addition to the above change related to equity investments with readily determinable fair values, there was a change for equity investments without readily determinable fair values. As a result, companies with significant portfolios of equity investments will likely see increased income statement volatility. ![]() The main impact of ASU 2016-01 is that changes in the value of equity investments must now be included in net income.Companies will no longer be able to classify an equity investment as available-for-sale and recognize changes in value within other comprehensive income. One of those pronouncements is Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-01: Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The year is quickly nearing an end, which will bring a new set of pronouncements that will become effective in 2018.
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