FASB Flash Report - January 2014

January 2014

On January 15, 2014, the FASB issued ASU 2014-011, Accounting for Investments in Qualified Affordable Housing Projects, to permit a reporting entity that invests in qualified affordable housing projects to account for the investments using a proportional amortization method if certain conditions are met. If an entity elects the proportional amortization method, it will amortize the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognize the net investment performance in the income statement as a component of income tax expense. Otherwise, the entity would apply either the equity method or the cost method, as appropriate.