Wiley GAAP 2020

19ASC 321 INVESTMENTS—EQUITY SECURITIES

• Perspective and Issues
  • Technical Alert
  • ASU 2016-01
  • ASU 2018-03
• Investment Topics
• Subtopic
• Scope and Scope Exceptions
  • Scope—Entities
  • Scope—Instruments
• Definitions of Terms
• Concepts, Rules, and Examples
  • Investments That No Longer Qualify for the Equity Method
  • Measurement
    • Equity Securities with Readily Determinable Fair Value
    • Equity Securities without Readily Determinable Fair Values—ASC 820-20 Practical Expedient
    • Equity Securities without Readily Determinable Fair Values—ASC 321 Measurement Alternative
    • Changes in Measurement Approach
    • Impairment Model for Equity Securities without Readily Determinable Fair Values
  • Dividend Income
  • Presentation and Disclosure

PERSPECTIVE AND ISSUES

Technical Alert

ASU 2016-01.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU is the result of the FASB’s project on accounting for financial instruments. The goal of the project is to improve the usefulness of financial instruments reporting for decision makers. Simplification is expected to be an outcome of the project. This ASU is the first one issued as part of the financial instruments project.

Guidance.

The ASU affects guidance on:

• Equity investments that are not consolidated or accounted for under the equity method,
• Financial liabilities under the fair value option, and
• Presentation and disclosure requirements for ...