Expand
Resize
Add to favorites
ASC 320-10-20 sets forth the circumstances under which an equity security's fair value is readily determinable. These circumstances occur when sales prices or bid-and-asked quotations are available on a national securities exchange or in the over-the-counter market. The fair value of an equity security traded only in a foreign market is readily determinable if that foreign market is of a breadth and scope comparable to one of the US markets. This guidance can be somewhat judgmental; however, we believe that there is a rebuttable presumption that the primary exchange in a foreign country has a similar breadth and scope to the US markets. Trading volumes that provide liquidity and quoted market prices (even if such volumes do not compare to the volumes on US stock exchanges) are indicators that a primary exchange in a foreign country has a similar breadth and scope to the US markets. For investments in mutual funds (and similar entities such as limited partnerships), the fair value per share (unit) must be determined and published and must be the basis for current transactions. If none of the criteria defined in ASC 320-10-20 is present, the equity security is outside the scope of ASC 320.
The essential point is whether fair value is readily determinable. Generally, the fair value of an equity security is not readily determinable if price quotations specified by ASC 320-10-20 are not available on the balance sheet date. This would occur when:
  1. Trading in the security on a national securities exchange has been suspended.
  2. No quotation is available from NASDAQ or Pink Sheets LLC.
However, a temporary lack of trades or price quotations for a security at the balance sheet date does not indicate that fair values are not readily determinable if the required market prices are available on days closely preceding and following the balance sheet date.
Expand

Welcome to Viewpoint, the new platform that replaces Inform. Once you have viewed this piece of content, to ensure you can access the content most relevant to you, please confirm your territory.

signin option menu option suggested option contentmouse option displaycontent option contentpage option relatedlink option prevandafter option trending option searchicon option search option feedback option end slide