Welcome to Quarterly Accounting Roundup: Second Quarter — 2021. In the second quarter of 2021, the FASB issued an Accounting Standards Update (ASU) on accounting for certain modifications or exchanges of freestanding equity-classified written call options. The Board also released proposed ASUs on (1) an entity’s use of a portfolio layer method for a fair value hedge and (2) the discount rate used by lessees that are not public business entities (PBEs) in the accounting for a lease. In addition, the FASB published an invitation to comment that seeks comment on what the Board’s future agenda priorities should be.
Conclusions of the FASB, GASB, IASB, and IFRS Interpretations Committee are subject to change at future meetings and generally do not affect current accounting requirements until an official position (e.g., Accounting Standards Update or IFRS Standards) is issued. Official positions are determined only after extensive deliberation and due process, including a formal vote.