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Reminder: FASB Public Comment Period

Reminder to corporate finance personnel: The public comment period on FASB’s proposed updates to Topic 815, Derivatives and Hedging, closes in one week.

The proposed update would require additional disclosures in the notes to the financial statements showing the relationship between each bifurcated embedded derivative and its related financial instrument host contract. The embedded derivative and the related host contract represent one legal contract. Currently the derivative and the contract are presented separately in the financial statements.

We encourage registrants, especially those with embedded derivatives not related to financial instruments, to reach out to the FASB and respond that the guidance should NOT be expanded to include non-financial instrument host contracts.

You can read our full post on the matter here.