Jeffrey L. Offhaus
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FASB ASC 820 - Fair Value Measurements and Disclosures

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 PDF

The following EBPAQC prepared primers are non-authoritative practice tools that provide general background information on various investment and insurance products pertinent to employee benefit plans.