FASB: Proposed clarification to fair value disclosure exemption

07 January 2013

The FASB issued for public comment a proposed Accounting Standards Update intended to clarify the scope and applicability of a disclosure exemption that is specific to private companies and non-public not-for-profit organisations. Comments on the proposal are invited by January 22, 2013.

The proposed clarification to fair value disclosure exception results from the issuance of Accounting Standards Update No. 2011-04, 'Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP and IFRSs'.

The proposed amendment would clarify that the requirement to disclose “the level of the fair value hierarchy within which the fair value measurements are categorised in their entirety (Level 1, 2, or 3)” does not apply to private companies and non-public not-for-profit organisations for items that are not measured at fair value in the statement of financial position, but for which fair value is disclosed.

Press release

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