By Joseph Neu
FASB’s proposed new accounting guidance on financial instruments is out for comment.
Months later than originally anticipated, on May 26, the FASB issued its long-awaited Exposure Draft (ED) for the current phase of its financial instruments project (conducted jointly with the IASB). The ED for this proposed Accounting Standards Update (ASU) indicates a big step closer to a total fair value approach to financial instruments accounting, including income recognition, but will still leave many balance sheets in limbo by not ushering in the full fair value era.