White paper

Changes to the disclosure requirements for fair value measurements

Oct 13, 2020
Audit Financial assets Financial reporting Presentation & disclosures

As part of its disclosure framework project, the Financial Accounting Standards Board (FASB) recently issued Accounting Standards Update (ASU) 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The ASU applies the provisions of recently released Chapter 8, Notes to Financial Statements, of the FASB’s Conceptual Framework for Financial Reporting, resulting in the removal, modification and addition of certain disclosure requirements. Our white paper, Changes to the disclosure requirements for fair value measurements, provides a summary of what ASU 2018-13 has and has not changed with respect to the fair value measurement disclosures in Topic 820 of the FASB’s Accounting Standards Codification. The tabular summary included in our white paper highlights whether nonpublic entities and (or) public business entities are affected by the changes.

The changes in ASU 2018-13 are effective for all entities for fiscal years, and interim periods therein, beginning after Dec. 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 Dec. 31, 2020. However, some or all of the changes may be adopted early. For example, an entity has the ability to early adopt any removed or modified disclosures, while delaying adoption of the additional disclosures until the required effective date. Entities should use our white paper to help identify those changes they may want to adopt early and those changes they may want to wait and adopt at the effective date.

RSM contributors

  • Mark Murray
    Senior Manager