Final standard on recognition & measurement of financial instruments.

• Position: FASB NEWS

The FASB voted to proceed with a final Accounting Standards Update (ASU) intended to improve and simplify the recognition and measurement of financial instruments.

As part of its discussion, the FASB voted to permit early adoption of the "own credit" provision in the standard. "Own credit" refers to the accounting effect of changes in the fair value of a financial liability due to changes in an organization's credit risk.

The ASU on recognition and measurement will take effect for public companies for fiscal years beginning after Dec. 15, 2017, including interim periods within those fiscal years. For nonpublic companies, the standard becomes effective for fiscal years beginning after...