FASB Clarifies Nonpublic Disclosure Exemption —Journal of Accountancy

Private Companies and Nonpublic Not-for-Profits are Exempted from a Particular Fair Value Disclosure as a Result of Recent FASB Amendment

The Financial Accounting Standards Board responded quickly to concerns voiced in December to issue an amendment clarifying that private companies and nonpublic not-for-profits are exempted from a particular fair value disclosure.  Ken Tysiac at The Journal of Accountancy reports the news:

The amendment clarifies that the requirement to disclose the level of the fair value hierarchy within which the fair value measurements are categorized in their entirety (as Level 1, Level 2, or Level 3) does not apply to private companies and nonpublic not-for-profits for items:

• That are not measured at fair value in the statement of financial position, but
• For which fair value is disclosed.

Accounting Standards Update (ASU) No. 2013-03, Financial Instruments (Topic 825): Clarifying the Scope and Applicability of a Particular Disclosure to Nonpublic Entities, makes the clarification. The ASU clarifies guidance in 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.

Read the full story here. 

 

The FASB Exempts Private Companies and Certain Non-Profits From Certain Fair Value Disclosures