IMA Financial Reporting Committee Comment letter on FASB Proposed Accounting Standards Update (ASU) No. 2019-100, Targeted Transition Relief for Topic 326, Financial Instruments—Credit Losses
The IMA Financial Reporting Committee issued a comment letter that generally supports the exposed guidance in FASB Proposed ASU No. 2019-100. If adopted, this proposal would allow an entity may make a one time, irrevocable election (upon adoption of this proposed guidance) to apply the fair value option Subtopic 825-10, Financial Instruments—Overall, to account for financial instruments otherwise within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost, (except if the instrument is held-to-maturity). An entity would make this election on an individual instrument basis.