The Financial Accounting Standards Board
(FASB) recently announced that it will be drafting a Proposed Accounting Standards Update (ASU) regarding liquidity and interest rate risk disclosures.
The FASB stated that the quantitative disclosures about liquidity risks would not need to be supplemented by qualitative disclosures about an entity’s ability to remain a going concern. The FASB indicated that a better approach would be “a collaborative effort of the FASB and other organizations that possess the interest and means to provide the most effective solution.”
The FASB will have a 90-day comment period once the Proposed ASU is released, and will determine the effective date once it receives feedback from respondents regarding the time required to implement the proposed amendments.