FASB Issues Proposed Clarification to Fair Value Disclosure Exemption

The Financial Accounting Standards Board (FASB) has issued for public comment a proposed Accounting Standards Update (ASU) intended to clarify the scope and applicability of a disclosure exemption that is specific to private companies and nonpublic not-for-profit organizations that resulted from the issuance of ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. Stakeholders are asked to review and provide comments on the proposal by January 22, 2013.

The proposed amendment would clarify that the requirement to disclose "the level of the fair value hierarchy within which the fair value measurements are categorized in their entirety (Level 1, 2, or 3)" does not apply to private companies and nonpublic not-for-profit organizations for items that are not measured at fair value in the statement of financial position, but for which fair value is disclosed.
 
The proposed Update is available for review and comment at www.fasb.org.
 
Source: January 7, 2013, FASB Press Release
 

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