Wiley GAAP: Financial Statement Disclosure Manual

51ASC 820 FAIR VALUE MEASUREMENT

1. Authoritative Literature
   1. Subtopic
   2. Scope and Scope Exceptions
   3. Definition of Fair Value
   4. Measurement Principles and Methodologies
      1. Initial Recognition
      2. Subsequent Measurement
      3. Inputs
      4. Valuation Approaches
2. Practice Alert
3. Presentation and Disclosure Requirements
   1. Disclosure
4. Presentation and Disclosure Examples
   1. Example 51.1: Accounting Policy—Fair Value of Financial Instruments
   2. Example 51.2: Accounting Policy—Fair Value Hierarchy
   3. Example 51.3: Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

AUTHORITATIVE LITERATURE

ASC 820 provides:

• A unified definition of fair value,
• Related guidance on measurement, and
• Enhanced disclosure requirements to inform financial statement users about:
  • The fair value measurements included in financial statements,
  • The methods and assumptions used to estimate them, and
  • The degree of observability of the inputs used in management's estimation process.

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.

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

• Accounting principles for share‐based payments in all ASC 718 Subtopics, except ...