NACUBO Submits Comments on Changes to Fair Value Measurements and Disclosures
September 8, 2010
In an attempt to align U.S. GAAP and International Financial Reporting Standards (IFRS) with regard to fair value measurements and disclosures, the Financial Accounting Standards Board (FASB) issued for comment an exposure draft (ED) in June 2010. The ED proposes new disclosures requirements which include a measurement uncertainty analysis for recurring Level 3 fair value measurements. This analysis is the most significant of the proposed disclosures, and potentially the most problematic. Organizations would be required to disclose the effects on Level 3 fair value measurements for changes in unobservable inputs when another input could reasonably have been substituted and would have resulted in a significant difference in fair value. The FASB proposed a similar disclosure requirement in an exposure draft issued in 2009, but received numerous comments from respondents expressing concern about the time and effort involved in preparing such disclosures. As a result, the requirement was not included in the Accounting Standards Update as issued.
The ED also addresses the concept of highest and best value, measuring fair value of financial instruments managed within a portfolio on the basis of net exposure to a particular risk, and application of blockage factors and other premiums and discounts in fair value measurements. These proposed changes are not expected to have a significant impact on colleges and universities.
The Accounting Principles Council (APC) of NACUBO has issued a comment letter to the FASB in response to the ED expressing concerns about the measurement uncertainty analysis and the inclusion, in general, of not-for-profit organizations in recently issued and possible future standards.
Director, Accounting Policy
- Tuition Discount Rates Reach New Record Level in 2015-16
- ED Offers Supplemental Cash Management Guidance
- Federal Agencies Release Guidance on Civil Rights Protections for Transgender Students
- 2016 CAO and CBO Collaborations
August 1-2, 2016
- 2016 Planning and Budgeting Forum
September 19-20, 2016
- 2016 Managerial Analysis and Decision Support
November 17-18, 2016
- WEBCAST: The Clery Act: Strategic Planning to Mitigate Institutional Risk
Thursday, May 26, 2016 1:00PM ET
- ON-DEMAND: Title IX: Key Issues Surrounding Institutional Compliance
- ON-DEMAND: Containing Cost and Risk with Renewables – the Power Purchase Agreement Story
- ON-DEMAND: NACUBO Live! Higher Education Accounting Forum
- ON-DEMAND: Are Hedge Funds and Private Equity Right for You? An Analysis of Alternative Investments
- ON-DEMAND: Responsibility Center Management: Two Different Perspectives