Fair Value Disclosure — FASB Defers Certain Disclosures for Nonpublic Employee Benefit Plans
Published on:
08 Jul 2013
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Today, the FASB issued an ASU1 that indefinitely defers the requirement for employee benefit plans within the ASU’s scope to disclose quantitative information about significant unobservable inputs used in Level 3 fair value measurements2 of certain equity investments.
The following are within the scope of the ASU:
- All employee benefit plans other than those that are subject to the filing requirements of the SEC.
- Fair value measurements of investments in (1) nonpublic-entity equity securities of a plan sponsor and (2) nonpublic-entity equity securities of a plan sponsor’s affiliated entities.
The deferral in this amendment is effective now for financial statements that have not been issued.
[1] FASB Accounting Standards Update No. 2013-09, Deferral of the Effective Date of Certain Disclosures for Nonpublic Employee Benefit Plans in Update No. 2011-04.
[2] This requirement in ASC 820-10-50-2(bbb) previously applied to both public and nonpublic entities.
