A proposed Accounting Standards Update (ASU) from the FASB aims to clarify the rules of derivative accounting.
FASB noted that due to the broad interpretation of the definition of a derivative in Topic 815, Derivatives and Hedging, the board is evaluating numerous types of contracts potentially accounted for as derivatives.
The proposed ASU addresses two issues: derivatives scope refinements and the scope of clarification for a share-based payment from a customer in a revenue contract.
FASB will accept comments from investors, accounting firms and other stakeholders on the proposed ASU through Monday, Oct. 21.