The US Financial Accounting Standards Board (FASB) has issued ASU 2016-01, ‘Recognition and Measurement of Financial Assets and Financial Liabilities’, which contains limited amendments to the guidance in US GAAP on the classification and measurement of financial instruments. The new standard significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments.