Financial Accounting Standards Board issues standard that amends and clarifies Accounting Guidance on Derivatives

WEBCAST: The Higher Education Accounting Forum Online Wednesday, May 29, 2013 10:00 AM - 5:00 PM ET
WEBCAST: Improve Your NFP Audit and Accounting Guide IQ Wednesday, June 26, 2013 1:00 PM ET
ON-DEMAND: <a href="Distance_Learning/On-Demand_Webcasts/OD_The_Cashless_and_Paperless_Business_Office.html">OD: The Cashless and Paperless Business Office
ON-DEMAND: <a href="Distance_Learning/On-Demand_Webcasts/OD_Affordable_Care_Act_Implementation_Roadmap_for_Colleges_and_Universities.html">Affordable Care Act: Implementation Roadmap for Colleges and Universities

April 30, 2003

On April 30, 2003, the Financial Accounting Standards Board (FASB) issued Statement No. 149, Amendment of Statement 133 on Derivatives Instruments and Hedging Activities.

The new standard requires that contracts with comparable characteristics be accounted for in a similar fashion. This guidance is intended to improve the consistency of reporting for contracts that are derivatives in their entirety or that contain embedded derivatives that warrant separate accounting. Not-for-profit organizations continue to recognize the change in fair value of derivatives as a change in net assets in the period of change.

The statement is effective for contracts entered into or modified after June 30, 2003, and for hedging relationships designated after June 30, 2003. The guidance should be applied prospectively.