ASC 825-10-45-5 through 45-7 address the requirement to present separately, in OCI, the portion of the total change in fair value of a liability that results from a change in the instrument-specific credit risk.
Certain CDs (e.g., brokered CDs) may meet the definition of a security and therefore may be within the scope of ASC 320. Accordingly, an entity must evaluate the specific terms of a CD.
See Section 220.127.116.11 for discussion of the disclosures that an entity must provide under ASC 323 when electing the FVO for an investment that would otherwise be accounted for under the equity method.
The AICPA Audit and Accounting Guide Investment Companies defines a master-feeder arrangement as “one in which a registered investment company that invests in a single investment vehicle.” Master-feeder structures are specifically permitted by Section 12(d)(1)(E)(ii) of the Investment Company Act of 1940.
See the SEC’s December 30, 1998, “Annual Industry Comment Letter From the Division of Investment Management.”
ASU 2019-01 added ASC 842-30-55-17A to require lessors that are not manufacturers or dealers to use the cost of the underlying asset as the asset’s fair value at lease commencement. This cost would reflect any applicable volume or trade discounts as well as costs related to acquiring the asset, including sales taxes and delivery charges. ASC 842-30-55-17A states, in part, “However, if there has been a significant lapse of time between the acquisition of the underlying asset and lease commencement, the definition of fair value [in ASC 820] shall be applied.” As a result of the amendments made by ASU 2019-01, the guidance on this topic in ASC 842 is similar to that in ASC 840. Moreover, ASC 842-10-55-3 and ASC 842-10-55-13 address considerations related to how a lease should be classified when it is not practical to determine the fair value of the underlying asset.
Although a plan sponsor’s disclosures about the fair value of pension and other postretirement benefit plan assets are not within the scope of ASC 820, ASC 715-20-50 contains similar applicable disclosure requirements.
ASC 845-10-30-15 and 30-16 address the types of purchases and sales of inventory with the same counterparty that are measured at fair value.
ASC 715-30-35-50 indicates that the fair value of an investment should reflect “brokerage commissions and other costs normally incurred in a sale if those costs are significant (similar to fair value less cost to sell).” See Section 10.10.11 for further discussion of the fair value measurement of assets in a defined benefit pension or other postretirement plan.
ASC 960-325-35-2 indicates that “[i]f significant, the fair value of an investment shall be reduced by brokerage commissions and other costs normally incurred in a sale (similar to fair value less cost to sell).”
In accordance with ASC 962-310-35-2, “participant loans [are] measured at their unpaid principal balance plus any accrued but unpaid interest.”
For Plans A, B, and C, the employer stock held by the rabbi trust is classified as equity in a manner similar to the accounting for treasury stock (see ASC 710-10-25-16 and 25-17). For Plan D, assets held by the rabbi trust are accounted for in accordance with other Codification topics (e.g., ASC 320 or ASC 321) (see ASC 710-10-25-18).
On the basis of inquiries with the FASB staff, we believe that ASC 815 did not change the Plan D accounting guidance in ASC 710; therefore, deferred compensation arrangements in which an entity applies the Plan D accounting guidance in ASC 710 are not within the scope of ASC 815.