|Original Pronouncement||Statement on Auditing Standards (SAS) 92.|
|Effective Date||This statement is now effective.|
|Applicability||Derivative instruments, including certain derivative instruments embedded in contracts; debt and equity securities; and hedging activities in which the entity designates a derivative or a nonderivative financial instrument as a hedge for which generally accepted accounting principles (GAAP) permit hedge accounting.|
SAS No. 122, Codification of Auditing Standards and Procedures, is effective for audits of financial statements with periods ending on or after December 15, 2012.
AU-C 501 supersedes AU Section 332. AU-C 501 combines the requirements and guidance from extant AU Section 331, Inventories; 332, Auditing Derivative Instruments, Hedging Activities and Investments in Securities; and 337, Inquiry of a Client’s Lawyer Concerning Litigation, Claims, and Assessments.
The ASB found that many of the requirements of AU Section 332 are essentially the same as Section 540, Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures The ASB decided that the application of those requirements in the other clarified standards to the subject matter addressed by AU Section 332 is most appropriately addressed ...