The FASB has issued ASU 2020-01, which clarifies the interactions between ASC 321, ASC 323 and ASC 815. The new guidance addresses accounting for the transition into and out of the equity method and measuring certain purchased options and forward contracts to acquire investments.
Effective date | Public entities | All other entities |
---|---|---|
Annual and Interim periods – Fiscal years beginning after |
Dec. 15, 2020 |
Dec. 15, 2021 |
Early adoption permitted |
Yes. If this occurs during an interim period, any adjustments are reflected as of the beginning of the interim period of adoption. |
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