FASB issues statement on derivative instruments

CPA Letter, The, June, 2003 by Glynn, Michael

The Financial Accounting Standards Board has issued Statement No. 149, Amendment of Statement 133 on Derivative Instruments and Hedging Activities, which amends and clarifies accounting for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities understatement 133.

Statement 149 is effective for contracts entered into or modified after June 30, 2003, with some exceptions for hedging relationships designated after June 30, 2003. The guidance should be applied prospectively. Copies of Statement 149 may be obtained through the FASB Order Department at 800/748-0659 or by placing an order on the FASB Web site at www.fasb.org.

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