Final standard on certain hybrid financial instruments.FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). has issued a final Statement of Financial Accounting Standard No. 155, Accounting for Certain Hybrid Instruments, an amendment to FASB Statements FASB Statement A standard set by the Financial Accounting Standards Board regarding a financial accounting and reporting method. Essentially, FASB statements determine the acceptable accounting practices that Certified Public Accountants use in reporting Nos. 133 and 140. Among other things, the standard allows financial instruments that have embedded Inserted into. See embedded system. derivatives to be accounted for as a whole, eliminating the need to bifurcate To divide into two. the derivative from its host, if the holder elects to account for the whole instrument on a fair value basis. The statement is effective for all financial instruments acquired or issued after the beginning of an entity's first fiscal year that begins after Sept. 15, 2006. For more, visit www.fasb.org/news/nr021606.shtml. |
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