7.3 Effective Date

ASC 815-20

65-3 The following represents the transition and effective date information related to Accounting Standards Updates No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, No. 2019-04, Codification Improvements to Topic 326, Financial Instruments — Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, and No. 2019-10, Financial Instruments — Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates:

For public business entities, the pending content that links to this paragraph shall be effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.
For all other entities, the pending content that links to this paragraph shall be effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021.
Early adoption, including adoption in an interim period, of the pending content that links to this paragraph is permitted. If an entity early adopts the pending content that links to this paragraph in an interim period, any adjustments shall be reflected as of the beginning of the fiscal year that includes that interim period (that is, the initial application date). . . .

For public business entities, ASU 2017-12 became effective for fiscal years beginning after December 15, 2018, and interim periods therein. In November 2019, the FASB issued ASU 2019-10, which deferred the effective date for all other entities. For those entities, ASU 2017-12 became effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021.

In addition, in April 2019, the FASB issued ASU 2019-04, which included amendments to ASC 815 related to hedge accounting. For entities that had not yet adopted ASU 2017-12 as of the issuance date of ASU 2019-04, the effective date and transition requirements of ASU 2017-12 are the same as those of ASU 2019-04.1 For entities that had adopted ASU 2017-12 as of the issuance date of ASU 2019-04, the effective date of ASU 2019-04 is the earlier of the beginning of the first quarterly period (if applicable) or the first annual period after the issuance date of ASU 2019-04, with early adoption permitted on or after that issuance date.

Footnotes

ASU 2019-04 includes Codification improvements related to several financial instrument topics, not just ASC 815. All references to the effective date of ASU 2019-04 in this discussion apply only to the effective date of the amendments to ASC 815.

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