Preface

We are pleased to present the 2024 edition of Fair Value Measurements and Disclosures (Including the Fair Value Option), which provides an overview of the accounting and disclosure guidance in ASC 820 and ASC 825 as well as insights into how to apply this guidance in practice.

Fair value measurements and disclosures are generally relevant to the financial reporting of all entities. The guidance on this topic in ASC 820 primarily reflects the outcome of the FASB’s joint project with the International Accounting Standards Board (IASB®) to substantially converge U.S. GAAP and IFRS® Accounting Standards. The FASB has made certain amendments since the culmination of its joint project with the IASB, including those in (1) ASU 2016-01, which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments and certain disclosure requirements associated with the fair value of financial instruments; (2) ASU 2018-13, which changes the fair value disclosure requirements for all entities; and (3) ASU 2022-03, which clarifies the guidance on fair value measurement of equity securities subject to contractual sale restrictions. Appendix F highlights all changes made to this publication since the 2023 edition.

The guidance on application of the fair value option (FVO) originated in FASB Statement 159. The FASB has not made any significant amendments to this guidance since the issuance of the original pronouncement.

This Roadmap is intended to help entities navigate the accounting guidance related to fair value measurements and disclosures, reduce complexity, and arrive at appropriate accounting conclusions.

We hope you find this Roadmap a useful resource, and we welcome your suggestions for future improvements. If you need assistance with applying the fair value guidance or have other questions about this topic, we encourage you to consult our technical specialists and other professional advisers.