What you should know about measuring fair value before your next audit
Abstract: The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value and outlines necessary financial disclosures about fair value measurements. Formerly referred to as FASB Statement of Financial Accounting Standards No. 157 (SFAS 157), ASC 820 significantly changes how companies disclose fair value in their financial statements and how they can fairly value certain assets or liabilities for which no market exists. This article takes a closer look at why plan sponsors should know about ASC 820.