6.5 Fair Value Measurements

Because ASC 815-40 requires certain fair value measurements and disclosures (e.g., equity-linked instruments classified as assets or liabilities under ASC 815-40-25 are subsequently measured at fair value), ASC 815-40-20 includes definitions related to fair value. In determining fair value under ASC 815-40, an entity should apply the guidance in ASC 820. In the absence of a specific exception, ASC 820 applies whenever fair value measurement or disclosures are permitted or required under U.S. GAAP (ASC 820-10-15-1). There is no specific scope exception in ASC 820 for fair value measurements under ASC 815-40. See Deloitte’s Roadmap Fair Value Measurements and Disclosures (Including the Fair Value Option) for more information about the fair value measurement and disclosure requirements of ASC 820.