The American Institute of Certified Public Accountants recently issued TIS Section 1800.05, Applicability of Fair Value Disclosure Requirements and Measurement Principles in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820, “Fair Value Measurements and Disclosures,” to Certain Financial Instruments. This guidance states that the measurement principles of ASC 820 do apply to financial instruments that are not recognized at fair value in the statement of financial position, but for which fair value is required to be disclosed in the notes to financial statements in accordance with paragraphs 10 through 19 of ASC 825-10-50, Financial Instruments. However, the fair value disclosure requirements of ASC 820-10-50 do not apply to financial instruments that are not recognized at fair value in the statement of financial position. It should be noted that for financial instruments that are recognized at fair value in the statement of financial position, ASC 825-10-50-10 indicates that the disclosure requirements of ASC 820 also apply in addition to disclosures required by ASC 825-10-50.
View TIS Section 1800.05 in full
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