Fri, Oct 29, 2021
How FASB's Proposed Fair Value Measurement Amendment Impacts Alternative Asset Investors
FASB proposed eliminating the ability to reflect a market participant-derived discount for securities contractually restricted from sale and its impact on investment companies in particular investors (limited partners).
Duration: 60 minutes
- What are the provisions of the proposed amendment to ASC Topic 820?
- Why is FASB proposing to change current guidance that allows the impact of contractual restrictions to be considered when estimating fair value?
- Is there a practical or economic difference between a security that is legally restricted from sale and a security that is contractually restricted from sale?
- What are the reasons for and against the change?
- Does the proposed change impact the practical expedient for estimating the fair value of fund interests?
- If the proposed change is enacted, what are the transition provisions?
- James L. Kroeker, Vice Chair, Financial Accounting Standards Board
- David L. Larsen, Kroll Institute Fellow and Managing Director, Kroll