A PDF version of this publication is attached here: Fair value measurements guide - September 2022 (PDF 2.94mb)
PwC is pleased to offer our accounting and financial reporting guide for Fair value measurements.
This guide summarizes the applicable accounting literature, including relevant references to and excerpts from the FASB’s Accounting Standards Codification (the Codification). It also provides our insights and perspectives, interpretative and application guidance, illustrative examples, and discussion on emerging practice issues.
This guide should be used in combination with a thorough analysis of the relevant facts and circumstances, review of the authoritative accounting literature, and appropriate professional and technical advice. Guidance on financial statement presentation and disclosure related to fair value disclosures can be found in PwC’s Financial statement presentation guide (FSP 20).
References to US GAAP
Definitions, full paragraphs, and excerpts from the FASB’s Accounting Standards Codification are clearly labelled. In some instances, guidance was cited with minor editorial modification to flow in the context of the PwC Guide. The remaining text is PwC’s original content.
References to other PwC guidance
This guide provides general and specific references to chapters in other PwC guides to assist users in finding other relevant information. References to other guides are indicated by the applicable guide abbreviation followed by the specific section number. The other PwC guides referred to in this guide, including their abbreviations, are:
  • Business combinations and noncontrolling interests (BCG)
  • Derivatives and hedging (DH)
  • Financial statement presentation (FSP)
  • Income taxes (TX)
  • Loans and investments (LI)
  • Property, plant, equipment and other assets (PPE)

Summary of significant changes
Following is a summary of the noteworthy revisions to the guide. Additional updates may be made to future versions to keep pace with significant developments.
General note: IFRS content was removed from the previous version of this guide. Refer to PwC’s Manual of Accounting—IFRS for discussion of fair value measurements in accordance with IFRS.
Revisions made in September 2022
FV 4, Fair value fundamentals

FV 6, Application to financial assets and financial liabilities
  • The content formerly in FV 6.2.4 was moved to FV 6.2.4A and a new FV 6.2.4 was added to reflect the impact of ASU 2022-03.

Revisions made in March 2022
FV 2, Scope

FV 4, Fair value fundamentals
  • FV was updated to discuss the recession of ASR 118.
  • FV 4.2.8 was updated to reflect the “portfolio exception” applicable to nonfinancial items accounted for as derivatives under ASC 815.
  • FV 4.8 was updated to reflect the FASB’s proposal related to the fair value measurement of equity securities subject to contractual restrictions.

FV 5, The fair value option

FV 6, Application to financial assets and financial liabilities
  • Updates were made to reflect the impact and implementation of ASC 326, Financial Instruments--Credit Losses.
  • FV 6.6.2 was updated for ASU 2020-01.

FV 7, Nonfinancial assets and liabilities, and business combinations
  • Former FV 7.6, Holdings in associates, joint ventures, & subsidiaries, was removed.
  • FV was updated for ASU 2021-08.
  • FV was added to discuss the accounting for deferred revenue prior to the adoption of ASU 2021-08.
  • FV 7.5.1 was updated to clarify the guidance of ASC 410, Asset Retirement and Environmental Obligations.

This publication has been prepared for general informational purposes, and does not constitute professional advice on facts and circumstances specific to any person or entity. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication. The information contained in this publication was not intended or written to be used, and cannot be used, for purposes of avoiding penalties or sanctions imposed by any government or other regulatory body. PricewaterhouseCoopers LLP, its members, employees, and agents shall not be responsible for any loss sustained by any person or entity that relies on the information contained in this publication. Certain aspects of this publication may be superseded as new guidance or interpretations emerge. Financial statement preparers and other users of this publication are therefore cautioned to stay abreast of and carefully evaluate subsequent authoritative and interpretative guidance.
The FASB material is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, Norwalk, Connecticut, 06856, and is reproduced with permission.
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