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.
Question:
Has the AICPA Employee Benefit Plan Audit Quality Center prepared tools
and documents to help me implement FASB ASC 820?
Answer:
Yes. The AICPA Employee Benefit Plan Audit Quality Center has compiled
and developed the following resources to assist plan sponsors and auditors
in understanding FASB ASC 820.
FASB ASC 820 Resources and Tools:
- Plan
Sponsor Frequently Asked Questions on FAS 157
- Illustrative
FAS 157 Note Disclosure
- Getting
Started: Applying New Accounting Rules for Measuring & Reporting
Fair Value of Plan Investments
- Considerations
for Plan Management in Understanding How Fair Values Are Determined
under FASB Statement No. 157, Fair Value Measurements
- A
Summary of the Reporting and Disclosure Requirements of FASB Statement
No. 157, Fair Value Measurements
- Alternative
Investments in Employee Benefit Plans
- Stable
Value Funds and Investment Contracts—An Overview
