The Financial Accounting Standards Board (FASB) plans to issue its final standard on the recognition and measurement of financial instruments during the first week of January 2016.

The final accounting standards update will take effect for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For private companies, the standard becomes effective for fiscal years beginning after December 15, 2018, and for interim periods within fiscal years beginning after December 15, 2019.

Companies will be allowed to adopt the guidance on presentation of liability’s credit risk upon issuance of the ASU in financial statements of annual or interim reporting periods that have not yet been issued or, for private companies, have not yet been made available for issuance.