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Chapter 12 — Fair Value Option

12.1 Introduction

12.1 Introduction

ASC 825-10
05-5 The Fair Value Option Subsections of this Subtopic address both of the following:
  1. Circumstances in which entities may choose, at specified election dates, to measure eligible items at fair value (the fair value option)
  2. Presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities.
05-6 See Topic 820 for guidance on fair value measurements.
10-1 The objective of the guidance in the Fair Value Option Subsections of this Subtopic is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions.
Entities
15-2 The guidance in this Subtopic applies to all entities.

Footnotes

1
In these circumstances, the entity applies the fair value measurement guidance in ASC 820.