FASB ASC 820, Fair Value Measurement 


Employee benefit plans generally must measure and report plan investments in their financial statements at fair value in accordance with FASB ASC 820, Fair Value Measurement. These requirements are important to all plans that are audited, whether a full scope or limited scope audit is performed. FASB ASC 820 provides a fair value framework for valuing investments in plan financial statements, discusses acceptable valuation techniques, discusses inputs to valuation techniques, establishes a fair value hierarchy that prioritizes the inputs, and requires extensive financial statement disclosures about the valuation of plan investments.

Center Tools and Resources

The Center has compiled and developed the following resources to assist plans and auditors in understanding FASB ASC 820

Applying Accounting Rules for Measuring and Reporting Fair Value of Plan Investments: Considerations for Employee Benefit Plans
Find general information about valuations of and disclosures about plan investments in plan financial statements under FASB ASC 820 fair value measurement criteria.

EBPAQC Plan Advisory: Valuing and Reporting Plan Investments 
The Center has prepared this Plan Advisory for you to share with your plan sponsor clients to help them in understanding their responsibilities for valuing and reporting their plan investments.

External Links:

FASB ASC 820, Fair Value Measurement
FASB ASC 820 defines fair value, provides a framework for measuring fair value in generally accepted accounting principles (GAAP), and requires extensive disclosures about fair value measurements.




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