OUR THOUGHTS ON:

FASB Amends Disclosures for Investments in Certain Entities that Calculate Net Asset Value Per Share

ERISA

By Lara Fuller

The Financial Accounting Standards Board (FASB) has recently issued an amendment related to disclosures for investments that calculate net asset value per share.  Under the current Fair Value Measurement, Topic 820, an entity may use, as a practical expedient, the net asset value per share of the investment to measure the fair value.  Currently, these investments are categorized within the fair value hierarchy table based on when the investment is redeemable with the investee at that net asset value.  These amendments remove the requirement to include investments that use net asset value per share as a practical expedient in the fair value hierarchy and also remove certain disclosures related to all investments that are eligible to be measured at fair value using the net asset value per share.  These amendments are effective for public entities for fiscal years beginning after December 15, 1015 and for all other entities, for fiscal years beginning after December 31, 2016.  The amendments should be applied retrospectively and early application is permitted. 1

Contact us with questions regarding the FASB amendment to the current Fair Value Measurement, Topic 820 and visit our Employee Benefit Plans Industry Group page to learn about our service offerings.

1 FASB Website

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