8.6 Certain Entities That Calculate NAV per Share (or Its Equivalent)

ASC 820-10

Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)

35-54B An investment within the scope of paragraphs 820-10-15-4 through 15-5 for which fair value is measured using net asset value per share (or its equivalent, for example member units or an ownership interest in partners’ capital to which a proportionate share of net assets is attributed) as a practical expedient, as described in paragraph 820-10-35-59, shall not be categorized within the fair value hierarchy. In addition, the disclosure requirements in paragraph 820-10-50-2 do not apply to that investment. Disclosures required for an investment for which fair value is measured using net asset value per share (or its equivalent) as a practical expedient are described in paragraph 820-10-50-6A. Although the investment is not categorized within the fair value hierarchy, a reporting entity shall provide the amount measured using the net asset value per share (or its equivalent) practical expedient to permit reconciliation of the fair value of investments included in the fair value hierarchy to the line items presented in the statement of financial position in accordance with paragraph 820-10-50-2B.

As discussed in Section 2.2.2, ASC 820 provides a practical expedient for certain investments without a readily determinable fair value. An entity that elects this practical expedient should not categorize the asset within the fair value hierarchy when providing the disclosures required by ASC 820. See Sections 10.9 and 11.2.2.3 for further discussion of the use of this practical expedient.

Confidential and Proprietary — for Use Solely by Authorized Personnel

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