FASB Proposes Enhancements to Scope of Derivatives Guidance

Enhance the guidance in ASC 815 by “excluding from derivative accounting certain contracts with underlyings that are based on the operations or activities of one of the parties to the contract” and changing “the predominant characteristics assessment applicable to certain contracts that are not traded on an exchange.”

Clarify how the revenue guidance in ASC 606 should be applied to “the accounting for share-based payments, such as warrants or shares, received from a customer that are consideration for the transfer of goods or services.”