Under the ASU, if certain conditions are met, a reporting entity may elect to account for
its tax equity investments by using the proportional amortization method regardless of
the program from which it receives income tax credits. The ASU’s amendments “remove the
specialized guidance for [low-income-housing tax credit] investments that are not
accounted for using the proportional amortization method and instead require that those
LIHTC investments be accounted for using the guidance in other [GAAP].”
For more information, see the press
release on the FASB’s Web site.