Fair Value — FASB Tentatively Decides to Defer Certain Disclosure Requirements for Nonpublic Employee Benefit Plans

Published on: 11 Apr 2013

At its meeting yesterday, the FASB tentatively decided to indefinitely defer, for nonpublic employee benefit plans,1 a requirement to disclose quantitative information about significant unobservable inputs about Level 3 fair value measurements2 of private-company equity securities of the plan sponsor. Nonpublic employee benefit plans within the scope of the FASB’s tentative decisions may hold private-company equity securities other than those of the plan sponsor; however, the deferred disclosure requirement is only for fair value measurements of private-company equity securities of the plan sponsor.

The FASB also directed the staff to draft a proposed Accounting Standards Update on the deferral, with a comment period ending May 31, 2013.

Editor’s Note: The FASB’s tentative decision does not defer the requirement in ASC 820-10-50-2(g) to provide a narrative description of the sensitivity in Level 3 fair value measurements to changes in significant unobservable inputs. However, nonpublic entities, including nonpublic employee benefit plans, are already exempt from disclosing this information.



1 For example, employee benefit plans that are not required to file a Form 11-K with the SEC.

2 The required disclosure in ASC 820-10-50-2(bbb) currently applies to both public and nonpublic entities, including nonpublic employee benefit plans. (For titles of FASB Accounting Standards Codification (ASC) references, see Deloitte’s "Titles of Topics and Subtopics in the FASB Accounting Standards Codification.")

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