Nonpublic entities’ disclosures about Level 3 fair value measurements
FINANCIAL REPORTING INSIGHTS |
Authored by RSM US LLP
We have updated our white paper, Changes to the disclosure requirements for fair value measurements, which provides a summary of the fair value measurement disclosure requirements in Topic 820, “Fair Value,” of the Financial Accounting Standards Board’s Accounting Standards Codification (ASC), as amended by Accounting Standards Update (ASU) 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The update provides clarification of the information a nonpublic entity is required to disclose about significant unobservable inputs used to develop Level 3 fair value measurements.
The amendments to ASC 820 made by ASU 2018-13 are effective for all entities for fiscal years, and interim periods therein, beginning after December 15, 2019. As such, for a private company with a calendar year end that does not prepare interim financial statements, the changes are effective in its financial statements for the year ending December 31, 2020.
Refer to our white paper for a summary of all the fair value measurement disclosure requirements in ASC 820 that were and were not affected by ASU 2018-13.
Call us at +1 213.873.1700, email us at email@example.com or fill out the form below and we'll contact you to discuss your specific situation.
This article was written by RSM US LLP and originally appeared on 2020-10-20.
2020 RSM US LLP. All rights reserved.
RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/about us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.
Vasquez & Company LLP is a proud member of the RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise and technical resources.
For more information on how Vasquez & Company LLP can assist you, please call +1 213.873.1700.
Subscribe to receive important updates from our Insights and Resources.