FASB issues ASU dealing with clarification to fair value disclosure exemption

07 February 2013

The FASB issued ASU No 2013-03, 'Financial Instruments (Topic 825): Clarifying the Scope and Applicability of a Particular Disclosure to Non-public Entities', which clarifies the scope and applicability of a disclosure exemption that is specific to private companies and not-for-profit organisations.

Accounting Standards Update No 2013-03 is a follow up to 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 Update clarifies 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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