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Master Netting Agreement Us Gaap

The new ASU explains that the 2011 standard, ASU No. 2011-11, balance sheet (theme 210): Compensation and commitment data apply to the following items if they are billed according to FASB criteria or when they are the subject of a master netting agreement or similar agreement: In December 2011, ASU No. 2011-11 as a result of a joint project with the International Standards Accounting Board (IASB). It was designed to improve transparency and comparability between GAAP and IFRS in the United States. The standard requires extensive information on financial instruments invoiced on the balance sheet or subject to an opposable master-netting contract or similar agreement. Following the publication of the standard, companies realized that many contracts had commercial provisions that would be consistent with a master`s compensation agreement. The FASB concluded that the requirement for better information for ordinary commercial receivables and receivables would significantly increase the cost of meeting the limited value of transaction returns. An update to accounting standards (ASU) released on Thursday by the FASB clearly shows that a 2011 data clearing standard does not apply to ordinary receivables and receivables on deliveries and services. The comments largely supported the clarification. In particular, the letters from the automotive industry agreed, as Ford, General Motors and a group representing six SEC-registered car dealerships were in favour of changing the scope. We can create a package tailored to your individual needs. NO. ASU 2013-01, balance sheet (theme 210): clarification of the scope of information relating to the billing of assets and liabilities, excludes receivables resulting from deliveries and services from the scope of the standard.

“The initial scope included certain assets and liabilities from supplies and services that resulted in non-useful information, that would not be consistent with the objectives of the 2011-11 update, and would require costly system modifications and bypasses to be implemented,” wrote Nick Cyprus, Chief Accounting Officer of General Motors. To subscribe to this content, simply call 0800 231 5199 — Ken Tysiac (ktysiac@aicpa.org) is a senior publisher of JofA.

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