OUR THOUGHTS ON:

Could Your Organization Be Exempt from Certain Fair Value Measurement Disclosures?

Not-for-Profit

By Jenna Zelenski

On January 7, 2013, the Financial Accounting Standards Board (FASB) issued an exposure draft pertaining to the Financial Instruments topic of the FASB Codification. The purpose of this exposure draft was to clarify the scope and applicability of fair value measurement disclosures to nonpublic entities.

The disclosures are optional for nonpublic entities that have assets less than $100 million on the date of the financial statements and do not have any derivative instruments. If the entity meets these criteria, the entity is exempt from certain disclosures unless the information is required by another Codification topic. The disclosures include the levels of the fair value hierarchy that fair value measurements would be categorized within for assets and liabilities not stated at fair value on the statement of financial position but for which fair value is disclosed.

Comments were due January 22, 2013, since the FASB wanted to accomplish this clarification as quickly as possible under its due process procedures and make it effective upon issuance. The two specific questions asked were whether respondents agreed with this clarification and that the proposed amendment should be effective upon issuance. There were a total of thirteen respondents. All of the respondents generally agreed with the clarifications and immediate implementation; however, six of the respondents requested either modifications or further clarifications to the exposure draft as presented. Further information regarding these modifications or clarifications can be found here.

© 2013 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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