KPMG reports on ASU 2017-08, which shortens the premium amortization period for purchased non-contingently callable debt securities. Shortening the amortization period is generally expected to more closely align the interest income recognition with the expectations incorporated in the market pricing on the underlying securities.
Mandatory effective dates and early adoption provisions:
Effective date:
Annual periods – Fiscal years beginning after
Interim periods – In fiscal years beginning after
Public business entities
Dec. 15, 2018
Dec. 15, 2018
All other entities
Dec. 15, 2019
Dec. 15, 2020
Early adoption allowed?
Yes, including adoption in an interim period.
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