Does this paragraph match any ASU $2016-1$ classifications? Prior to ASU $2016-1,$ U$.$S$.$ GAAP allowed classification of equity investments as AFS securities if those investments were not held for trading, but ASU $2016-1$ requires equity investments to be accounted for at fair value through net income unless the investor can exert significant influence over the activities of the investee. Therefore, FCA$$s approach is not consistent with current U$.$S$.$ GAAP.