Comments due on FASB Fair Value Disclosures Exposure Draft
September 24, 2009
The Financial Accounting Standards Board (FASB) Exposure Draft of a proposed Accounting Standards Update seeks to improve disclosures about fair value measurements. The proposed update would apply to independent institutions with alternative investments and other assets with significant unobservable - or level 3 - inputs. Comments are due October 12, 2009.
The proposed Update, "Fair Value Measurements and Disclosures," will affect topic 820 in the new FASB Codification, which was originally issued as FASB Statement No. 157, "Fair Value Measurements." Because assets recorded at fair value that use level 3 inputs are thought to have greater degrees of value subjectivity and uncertainty, the proposed update would require disclosure of much more information about such assets.
The proposal would require the following types of additional disclosures:
- The effect of reasonably possible alternatives for the level 3 inputs used
- Amounts of significant transfers in or out of level 1 and level 2 categories of fair value measurements and the reason for the transfer
- Activity in level 3 fair value measurement that includes gross purchase, sale, issuance, and settlement information by asset class
- Disclosures about inputs and valuation techniques for all fair value measurements that use level 2 or level 3 inputs
The proposal defines asset class as detail that comprises a financial statement line item. Independent institutions and not-for-profit foundations affiliated with public institutions would have to disclose activity, transfers between level 1 and level 2 input categories, and valuation technique information by investment type. Because valuations for levels 2 and 3 use and weigh various matters and issues to produce fair value, disclosures could be extensive.
Comments are due to FASB by October 12, 2009. NACUBO urges the many institutions and foundations affected by this proposal to send comments either directly to FASB or to NACUBO for inclusion in the industry response.
Director, Accounting Policy
- Program Integrity Rulemaking to Be Delayed
- Associations Respond to McCaskill Sexual Assault Legislation
- COFAR Releases Frequently Asked Questions on OMB's Super Circular
- 2014 Planning and Budgeting Forum
September 22-23, 2014
- 2014 Tax Forum
September 28-September 30, 2014
- 2014 Global Operations Forum
September 30-October 1, 2014
- 2014 Intermediate Accounting and Reporting - Fall
October 13-14, 2014
- ON-DEMAND: Strategic Tuition Assessment and Tuition Restructuring
- ON-DEMAND: Are Shared Services Right for Your Organization – The KU Journey
- ON-DEMAND: VIRTUAL: 2014 Annual Meeting
- ON-DEMAND: FASB's Proposed NFP Reporting Changes
- ON-DEMAND: VIRTUAL: Student Financial Services Conference
- ON-DEMAND: VIRTUAL: Higher Education Accounting Forum
- ON-DEMAND: VIRTUAL: Global Operations Support and Compliance Forum
- A Guide to College and University Budgeting: Foundations for Institutional Effectiveness, 4th ed. - by Larry Goldstein
- NACUBO's Guide to Unitizing Investment Pools - by Mary S. Wheeler
- Managing and Collecting Student Accounts and Loans - by David R. Glezerman and Dennis DeSantis