ASC 820 does not eliminate certain practicability exceptions presented in other accounting standards. ASC 820-10-15-3 describes those practicability exceptions, which include:
  • Measurements that use a transaction price (an entry price) as an exit price at initial recognition
    For example, ASC 820 does not impact the ability under ASC 460, Guarantees, to initially measure the fair value (an exit price) of a guarantee using a transaction price (an entry price).
  • Instruments for which fair value is not reasonably determinable such as those within the scope of ASC 845, Nonmonetary Transactions, ASC 410, Asset Retirement and Environmental Obligations, ASC 420, Exit or Disposal Cost Obligations, and the Retirement Benefits guidance under ASC 715-30 and ASC 715-60 (participation rights)
  • Certain assets acquired and liabilities assumed in a business combination measured under alternative measurement methods in ASC 805-20-30-10
  • Financial assets or financial liabilities of a collateralized financing entity when the financial assets or financial liabilities are measured using the measurement alternative (see FV
  • Instruments for which fair value cannot be reasonably estimated, such as noncash consideration promised in a contract under ASC 606
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