FASB tentatively voted to move ahead with drafting final disclosure requirements related to balance sheet offsetting. This requirement will be a narrower version of its initial efforts with the International Accounting Standards Board (IASB) on that topic. FASB's decision was contingent on IASB reaching the same conclusions related to the disclosures during its upcoming deliberations on transition and effective date. FASB voted that the disclosures be effective for reporting periods beginning on or after Jan. 1, 2013, with retrospective application.
On April 29, AFP sent in a comment letter on this issue. At the time, it was thought that the FASB was going to move toward the IFRS model, which takes a more stringent approach by eliminating companies' ability to offset some derivative sale and repurchase contracts when the right of setoff is conditional, there is no intention to set off, or such intention is conditional. However, shortly after the comment period ended, the FASB completely reversed its decision and decided to keep most of the current guidance intact.