Defining Issues | March 2017
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.
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.
ASU 2017-08
Mandatory effective dates and early adoption provisions:
Effective date | Public business entities | All other entities |
Annual periods – Fiscal years beginning after | Dec. 15, 2018 | Dec. 15, 2019 |
Interim periods – In fiscal years beginning after | Dec. 15, 2018 | Dec. 15, 2020 |
Early adoption allowed? |
| Yes, including adoption in an interim period. |
Defining Issues
Download PDFReceive the latest financial reporting and accounting updates with our newsletters and more delivered to your inbox.
Access our accounting research website for additional resources for your financial reporting needs.