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In August 2018, FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, to modify the disclosure requirements on fair value measurements in FASB ASC 820, Fair Value Measurement.

The following disclosure requirements were removed from FASB ASC 820:

1 The amount and reasons for transfers between level 1 and level 2 of the fair value hierarchy.

2 The policy for timing of transfers between levels.

3 The valuation processes for level 3 fair value measurements.

4 For nonpublic entities, the changes in unrealized gains and losses for the period included in earnings for recurring level 3 fair value measurements held at the end of the reporting period.

FASB ASU No. 2018-13 modified certain disclosure requirements. For a nonpublic entity, the modifications include disclosing transfers into and out of level 3 of the fair value hierarchy and purchases and issues of level 3 assets and liabilities instead of a rollforward for level 3 fair value measurements. In addition, disclosure requirements were added for public entities.

The amendments in FASB ASU No. 2018-13 are effective for all entities for fiscal years beginning after December 15, 2019.

Participants are encouraged to consult the full text of ASU No. 2018-13 on FASB’s website at www.fasb.org

Note. This section does not include all recently issued accounting standards updates. Auditors should monitor FASB developments at http://asc.fasb.org/home.