Statement of Financial Condition
UBS Securities LLC
Notes to the Statement of Financial Condition (continued)
(In Thousands)
2. Significant Accounting Policies (continued)
Recent Accounting Developments (continued)
Adopted in 2021 (continued)
The Company adopted the amendments for contract modifications as of January 1, 2021. As the
Company has no designated accounting hedges, the adoption had no impact on its statement of
financial condition.
In October 2020, the FASB released ASU 2020-08, "Codification Improvements to Subtopic 310-
20, Receivables Nonrefundable Fees and Other Costs", to provide targeted improvements for the
amortization of certain purchased callable debt securities held at a premium.
The Company adopted ASU 2020-08 on its effective date of January 1, 2021. The adoption of
ASU 2020-08 did not have a material impact on the Company's statement of financial condition.
In October 2020, the FASB released ASU 2020-10, "Codification Improvements", to amend the
location of certain disclosure and presentation requirements within the FASB codification, and
clarify guidance on a variety of topics.
The Company adopted ASU 2020-10 on its effective date of January 1, 2021. The adoption of
ASU 2020-10 did not have a material impact on the Company's statement of financial condition.
Pending Adoption
In May 2021, the FASB released ASU 2021-04 "Modification of Equity-Classified Written Call
Options" to clarify how an issuer should account for modifications made to equity-classified
written call options. The guidance in the ASU requires an issuer to treat a modification of an
equity-classified warrant that does not cause the warrant to become liability-classified as an
exchange of the original warrant for a new warrant. This guidance applies whether the modification
is structured as an amendment to the terms and conditions of the warrant or as termination of the
original warrant and issuance of a new warrant.
ASU 2021-04 is effective for fiscal years, and interim periods within those fiscal years, beginning
after December 15, 2021. The Company adopted the ASU on its effective date as of January 1,
2022. The adoption of ASU 2021-04 did not have a material impact on the Company's statement
of financial condition.
In October 2021, the FASB released ASU 2021-08 "Accounting for Contract Assets and Contract
Liabilities from Contracts with Customers" which provides guidance on recognizing and
measuring contract assets and contract liabilities from contracts with customers acquired in a
business combination. The ASU amends ASC 805 to add contract assets and contract liabilities
to the list of exceptions to the recognition and measurement principles that apply to business
combinations and requires that an entity (acquirer) recognize and measure contract assets and
contract liabilities acquired in a business combination in accordance with Topic 606.
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