MEDIA ADVISORY 02/07/13
FASB Issues Accounting Standards Update on Proposed Clarification to Fair
Value Disclosure Exemption Affecting Private Companies and Not-for-Profit
Organizations
Norwalk, CT, February 7, 2013—The Financial
Accounting Standards Board (FASB) today issued Accounting Standards Update No.
2013-03, Financial Instruments (Topic 825): Clarifying the Scope and
Applicability of a Particular Disclosure to Nonpublic Entities, which
clarifies the scope and applicability of a disclosure exemption that is specific
to private companies and not-for-profit organizations that resulted from the
issuance of Accounting Standards Update No. 2011-04, Fair Value Measurement
(Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure
Requirements in U.S. GAAP and IFRSs.
The Update clarifies that the
requirement to disclose "the level of the fair value hierarchy within which the
fair value measurements are categorized in their entirety (Level 1, 2, or 3)"
does not apply to private companies and nonpublic not-for-profit organizations
for items that are not measured at fair value in the statement of financial
position, but for which fair value is disclosed.
The amendments will be
effective upon issuance. The Accounting Standards Update is available at the FASB
website.
About the Financial Accounting
Standards Board
Since 1973, the Financial Accounting Standards
Board has been the designated organization in the private sector for
establishing standards of financial accounting and reporting. Those standards
govern the preparation of financial reports and are officially recognized as
authoritative by the Securities and Exchange Commission and the American
Institute of Certified Public Accountants. Such standards are essential to the
efficient functioning of the economy because investors, creditors, auditors, and
others rely on credible, transparent, and comparable financial information. For
more information about the FASB, visit our website at www.fasb.org.