Disclosures about Offsetting Assets and Liabilities

Companies will be required to disclose additional information about financial instruments that have been, or may be, eligible for offsetting in the financial statements under guidance released by the Financial Accounting Standards Board (FASB) in Accounting Standards Update (ASU) 2011-11 Disclosures about Offsetting Assets and Liabilities. The ASU is a response to the differences in US and international standards for the net presentation of certain repurchase agreements, derivative arrangements, instruments subject to master netting agreements, and the related cash collateral.

Although the new requirements apply to all companies, we expect that financial institutions will be most directly affected.

Our latest MHM Messenger provides background on the convergence project, an explanation of how the changes may affect your company, and potential implications for future convergence projects.

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