FASB Expands Fair Value Disclosure Requirements
January 30, 2010
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2010-06. The ASU requires new disclosures and clarifies some existing disclosure requirements about fair value measurement as set forth in FASB Codification Subtopic 820-10 (originally issued as FASB Statement 157).
The ASU provides amendments to Subtopic 820-10 and requires the following new disclosures:
- Significant transfers in and out of level 1 and level 2 fair value measurements and the reasons for the transfers
- An activity schedule of level 3 fair value measurements that separately presents information about purchases, sales, issuances, and settlements. Such information will be on a gross basis rather than one net number.
The ASU also clarifies existing disclosures as follows:
- Fair value measurement disclosures must be provided for each class of assets and liabilities. Classes are subsets of assets and liabilities and reporting entities can use judgment in determining the appropriate class.
- Disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurement must be provided. The disclosures are required for fair value measurements that fall in either level 2 or level 3.
The new disclosures about level 3 purchases, sales, issuances, and settlements in the activity roll-forward in level 3 fair value measurements are effective for fiscals years beginning after December 15, 2010, or FY12 for the vast majority of independent colleges and universities. All other disclosures and clarifications are effective for fiscal years beginning after December 15, 2009, of FY11 for the vast majority of independent institutions.
The ASU is available on the FASB website.
Director, Accounting Policy
- NACUBO Responds to GASB's Fair Value Proposal
- IRS Again Issues 1098-T Fine Notices
- SEC Approves Money Market Fund Reform
- 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
- WEBCAST: Strategic Tuition Assessment and Tuition Restructuring
Thursday, September 4, 2014 1:00 PM ET
- 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