Wiley GAAP 2020

52 ASC 820 FAIR VALUE MEASUREMENTS

• Perspective and Issues
  • Subtopic
  • Scope and Scope Exceptions
    • Scope
  • Overview
    • ASC 820, Fair Value Measurement.
• Definitions of Terms
• Concepts, Rules, and Examples
  • Definition
  • Measurement Principles and Methodologies
    • Initial Recognition
    • Subsequent Measurement
    • Item Identification and Unit of Account
    • Principal or Most Advantageous Market and Market Participants
    • Measurement Considerations When Markets Become Illiquid or Less Liquid
    • Determining Whether There Has Been a Significant Decrease in Level of Activity
    • Selection of the Valuation Premise for Asset Measurements
    • Strategic Buyers and Financial Buyers
    • The Combination Valuation Premise
    • Risk Assumptions When Valuing a Liability
    • The Hypothetical Transaction and Operational Difficulties Experienced in ­Practice
    • Liabilities with Inseparable Third-Party Credit Enhancements
    • Measurement—Credit Enhancements
    • Inputs
    • Valuation Approaches
    • Income Approaches
  • Fair Value Disclosures

PERSPECTIVE AND ISSUES

Subtopic

ASC 820 contains one subtopic:

• ASC 820-10, Overall, which defines fair value, describes a framework for measuring fair value, and details required disclosures.

Scope and Scope Exceptions

ASC 820 does not require fair value measurements in addition to those required by other topics in the Codification.

Scope.

In pursuing an incremental approach, ASC 820 contains scope exceptions for certain, highly complex specialized applications. It does not apply to:

• Share-based payments transactions ...