Update, Projected Timing, and Effective Date and Transition of the Amendment of Statement 133
The Board completed its redeliberations on the amendment to FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities, on December 18, 2002. The Board plans to issue a final Statement during the first quarter of 2003.
Except for amendments relating to Statement 133 Implementation Issues, the final Statement will be effective for transactions and hedging relationships entered into after March 31, 2003, and should be applied prospectively. Early application is encouraged. Statement 133 Implementation Issues that have been cleared by the Board and have been effective for fiscal quarters that began prior to March 15, 2003, should continue to be applied in accordance with their respective effective dates and transitions. However, Statement 133 Implementation Issue No. C13, “When a Loan Commitment Is Included in the Scope of Statement 133,” will be modified in accordance with the decisions made as part of the amendment process, and entities should apply the revised guidance prospectively to contracts entered into after March 31, 2003.