Deputy Seminar, Denver, CO

ASU 2016-01, Financial Instruments Recognition & Measurement  Targeted improvements to current guidance  Most importantly for financial institutions, FASB retained the following models:

 Most equity securities will be required to be measured at fair value recognized through net income (FV-NI)  Does not apply to equity method investments, FHLB stock or FRB stock  New practical exception for nonmarketable equity securities  Record at cost adjusted for impairment  Eliminates OTTI model for these evaluations Equity Securities: ASU 2016-01, Financial Instruments Recognition & Measurement