Heads Up — FASB Clarifies Fair Value Measurement Guidance (July 1, 2022)
This issue discusses the FASB’s newly issued Accounting Standards Update (ASU) No. 2022-03, which (1) clarifies the guidance in ASC 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction and (2) requires specific disclosures related to such an equity security. For public business entities, the amendments in the ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years, with early adoption permitted. For all other entities, the ASU’s amendments are effective for fiscal years beginning after December 15, 2024, and interim periods within those fiscal years, with early adoption permitted for both interim and annual financial statements that have not yet been issued or made available for issuance.
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