FASB ASC 820 - Fair Value Measurements and Disclosures
Question:
Do the provisions of FASB ASC 820 - Fair Value Measurements and Disclosures apply to my employee
benefit plan?
Answer:
Employee benefit plans must measure and report all investments in their financial
statements at "fair value" in accordance with FASB ASC 820 - Fair Value Measurements and Disclosures.
Question:
I have a limited-scope audit performed of my employee benefit plan. Does FASB ASC 820 still apply to me?
Answer:
This standard is important to all plans that are audited, whether a full
scope or limited scope audit is performed. FASB ASC 820 establishes a
fair value framework for valuing investments in plan financial statements,
discusses acceptable valuation techniques, discusses inputs to valuation
techniques, establishes a fair value hierarchy that prioritizes the inputs,
and requires extensive financial statement disclosures about the valuation
of plan investments.
FASB ASC 820 Resources and Tools:
- Valuing & Reporting Plan Investments - This EBPAQC advisory provides information to assist plan sponsors in understanding their responsibilities for valuing and reporting plan investments
- Stable Value Funds and Investment Contracts – An Overview – This EBPAQC Primer provides general and background information on stable value investments.
- Plan Investments in Bank Collective Investment Funds – This EBPAQC Primer provides general and background information on Bank Collective Funds.
