Fair Value Disclosure — FASB Plans to Issue ASU Deferring Certain Disclosures for Nonpublic Employee Benefit Plans
Published on:
12 Jun 2013
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Today, the FASB tentatively decided to:
- Direct its staff to prepare a final Accounting Standards Update (ASU) that would indefinitely defer 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 measurements1 of certain equity investments.
- Include the following 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.
- Make the final ASU effective upon its issuance, which is expected in July.
The staff stated that it expects to deliver the draft to the FASB for its vote by formal written ballot in time for the Board’s June 26 meeting.
[1] This requirement in ASC 820-10-50-2(bbb) currently applies to both public and nonpublic entities.
