Project Update

Balance Sheet Offsetting—a Scope Clarification of ASU 2011-11

Last updated on January 31, 2013.

(Updated sections are indicated with an asterisk *)

Project Objective
*Due Process Documents
*Decisions Reached at Last Meeting
*Summary of Decisions Reached to Date
*Next Steps
Board/Other Public Meeting Dates
Background Information
Contact Information

Project Objective

The objective of this project is to clarify the scope of Accounting Standards Update No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities in accordance with the project objective of providing information to users of financial statements in order to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those that prepare their financial statements on the basis of IFRS.

*Due Process Documents

On January 31, 2013, the FASB completed this project with the issuance Accounting Standards Update 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.

*Decisions Reached at Last Meeting

Please see Board minutes below.

*Summary of Decisions Reached to Date (As of January 31, 2013)

Please see Accounting Standards Update No. 2013-01.

*Next Steps

None.

Board/Other Public Meeting Dates

The Board meeting minutes are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard.

January 9, 2013 Board Meeting—Comment Letter Summary and Redeliberations
October 31, 2012 Board Meeting—Scope Clarification
October 31, 2012 Agenda Decision Announcement

Background Information

Accounting Standards Update 2011-11 was issued in December 2011 and requires entities to apply the amendments for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods. This Update was issued jointly with the IASB.

The scope of the Update outlined in paragraph 210-20-50-1 as follows:

210-20-50-1 The disclosure requirements in paragraphs 210-20-50-2 through 50-5 apply to the following:
  1. Recognized financial instruments and derivative instruments that are offset in accordance with either Section 210-20-45 (the right of setoff in FIN 39 carried forward from APB 10 and FIN 41, see Appendix A for complete references) or Section 815-10-45 (the derivatives provisions from FIN 39, see Appendix A for complete references)
     
  2. Recognized financial instruments and derivative instruments that are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either Section 210-20-45 or Section 815-10-45.
Preparers of financial statements have identified implementation issues and inconsistency in planned practice on whether the following are in the scope of Update 2011-11:
  1. Trade receivables and trade payables
     
  2. Unsettled regular way trades.
As such, the Board decided to add this project to the agenda to clarify and amend what instruments should be considered in the scope of Update 2011-11.

Contact Information

Melissa Maroney
Project Manager
mamaroney@fasb.org

Kathryn Cantlon
Postgraduate Technical Assistant
kscantlon@fasb.org