FASB Improves Guidance on Financial Instruments

The FASB has issued Accounting Standards Update No. 2020-03, Codification Improvements to Financial Instruments, which makes narrow-scope amendments related to the following topics:

• Fair value option disclosures.
• Applicability of the portfolio exception in ASC 820 to nonfinancial items.
• Disclosures for depository and lending institutions.
• Cross-reference to guidance in ASC 470-50 on line-of-credit or revolving-debt arrangements.
• Cross-reference to net asset value practical expedient in ASC 820-10.
• Interaction between ASC 842 and ASC 326.
• Interaction between ASC 326 and ASC 860-20.

For more information, see the press release on the FASB’s Web site.