Fair Value Measurement Proposal Released
The Financial Accounting Standards Board (“FASB”) has unanimously approved the release of a proposal related to its disclosure framework project. Proposed Accounting Standards Update No. 2015-350, Fair Value Measurement (Topic 820): Disclosure Framework— Changes to the Disclosure Requirements for Fair Value Measurement, seeks to improve the footnote disclosure rules under Topic 820, Fair Value Measurement. The proposal calls for the elimination of requirements in Topic 820 considered redundant and no longer useful, as well as updates to other rules.
As mentioned in our December 7th blog, the FASB also proposes the addition of three new disclosure requirements for public businesses:
- The changes in unrealized gains and losses for the period included in other comprehensive income and earnings for recurring Level 1, Level 2, and Level 3 fair value measurements;
- The range and weighted average of significant unobservable inputs for recurring Level 3 fair value measurements; and
- The historical time period, if any, used to develop these inputs.
Comments on the proposal are due February 29, 2016.