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While the effective interest method is preferred for purposes of amortizing the discount, FASB's Derivatives Implementation Group permits straight-line amortization of premiums and discounts. This may result in a formal task force like the FASB's Derivatives Implementation Group (DIG) that tried to help clarify Statement 133, or through the FASB issuing clarifying Staff Positions, but this remains to be seen. the board's proposal retains the multi-level hierarchy and updates the previous hierarchy to include more recent types of standards such as FASB Staff Positions (FSPs) and Derivatives Implementation Group (DIG) issues. |
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