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ASC 820, Fair Value Measurement (“ASC 820” or the “fair value standard”), defines fair value and establishes a framework for measuring it. ASC 820 includes disclosure requirements for fair value measurements that are required or permitted by all accounting pronouncements. Requirements related to the presentation of assets and liabilities at fair value are addressed in other US GAAP and are not in the scope of ASC 820.
ASC 820-10-50-1C states that fair value disclosures are required for assets and liabilities measured at fair value. Fair value disclosures are required for fair value measurements after initial recognition (i.e., on “Day 2”), and therefore, are not required for assets and liabilities that are only initially recognized at fair value (e.g., in a business combination, asset retirement obligations under ASC 410, Asset Retirement and Environmental Obligations, or exit or disposal cost obligations under ASC 420, Exit or Disposal Cost Obligations).
ASC 820-10-50-2 indicates that measurements based on fair value (e.g., fair value less cost to sell) are also subject to the disclosure requirements in ASC 820.
ASC 825, Financial Instruments, includes incremental fair value disclosure requirements, including the fair value of financial instruments not measured at fair value for public business entities (see FSP 20.6) and enhanced disclosures for equity securities without readily determinable fair values (see LI 12.6.1).
New guidance
ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, modifies the fair value disclosure requirements based on application of the disclosure framework issued in August 2018. The provisions that removed or amended certain disclosures could be adopted immediately, with retrospective application. This chapter has been updated to remove/amend those disclosures (see FSP 20.3.1, FSP, and FSP 20.4).
In some cases, the ASU requires additional disclosures for all public and nonpublic companies for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption of the additions is not required, even if early adoption is elected for the other amendments.
The new disclosure requirements are to be applied prospectively.

20.2.1 Scope for fair value disclosures

Various accounting pronouncements govern the reporting of balances at fair value. This section describes the fair value disclosure requirements related to several common balance sheet categories. Fair value disclosures- investments and cash equivalents

All equity securities, except those under the “measurement alternative” in ASC 321, Investments - Equity Securities, and debt securities classified as trading or available-for-sale and therefore measured at fair value, are subject to the fair value disclosure requirements of ASC 820. Held-to-maturity (HTM) debt securities are carried at amortized cost and, for public business entities, the fair value should be disclosed as discussed ASC 825-10-50-10. This is true even when certain short-term debt and equity securities, such as treasury bills, money market funds, and commercial paper, are classified as cash equivalents. Entities that are not public business entities have no requirement to disclose the fair value of HTM securities.
ASC 825-10-50-1 indicates entities that are not public business entities have no requirement to disclose the fair value of instruments not measured at fair value, such as HTM securities.
When required, the fair values of HTM securities are required to be measured consistent with the provisions of ASC 820.
When applying the “measurement alternative” in ASC 321, whether cash equivalents or not, remeasurement events result in an equity investment being remeasured to fair value in accordance with ASC 820 on the date of the remeasurement event. As such, fair value disclosures for nonrecurring measurements are required. The ASC 820 disclosure requirements are incremental to the disclosures required by ASC 321. Fair value disclosures-servicing assets and liabilities

When recorded at fair value at the reporting date, servicing assets and liabilities are subject to the disclosure requirements of ASC 820, in addition to the disclosures required by ASC 860-50-50 (see FSP 22). Fair value disclosures-hedged items

For a hedged item that is reported at fair value or has been in a hedging relationship for changes in its overall fair value from inception such that it is essentially measured at its full fair value, we believe it would be appropriate to apply the disclosure requirements of ASC 820-10-50.
For a hedged item reported on a measurement basis other than fair value (in which the change in overall fair value is not the hedged risk), we do not believe the partial measurement of fair value, achieved through the adjustments of carrying value, requires fair value disclosures for the hedged item as a whole or for the adjustments to the carrying value separately. Fair value disclosures-pension plan assets

Plan assets of a defined benefit pension or other postretirement plan accounted for under ASC 715, Compensation—Retirement Benefits, are excluded from the scope of ASC 820. However, these assets are subject to the disclosures required by ASC 715-20-50-1(d)(iv) for public entities and ASC 715-20-50-5(c)(iv) for nonpublic entities (see FSP 13). Fair value disclosures-excess 401(k) plans

Excess 401(k) plans provide employees with an opportunity to increase savings beyond the limits of the reporting entity’s qualified 401(k) plan. Employee contributions to an excess 401(k) plan are generally part of the general assets of the reporting entity but the amount due to the employee is tracked using a “phantom account.”
We believe reporting entities can make a policy election to measure the phantom account at fair value. If the reporting entity measures the liability at fair value, the disclosures required by ASC 820 are necessary. If it is not measured at fair value, the phantom account is not subject to ASC 820 for measurement or disclosure. Fair value disclosures-long lived assets held for sale

An adjustment to assets held for sale to reflect fair value less costs of disposal is recognized on a nonrecurring basis. Such adjustments are recognized only in periods when the fair value does not exceed the carrying value at the date the decision to sell was made. Therefore, the ASC 820 disclosure requirements will apply each time the reporting entity adjusts the recorded amount of the long-lived assets held for sale. Fair value disclosures-asset impairments

When a long-lived asset is impaired, the reporting entity should include the nonrecurring measurement disclosures in (1) the quarter in which the impairment was recorded, (2) its subsequent quarterly filings for the year in which the impairment is recorded, and (3) the annual filings that include the quarter in which the charge was recognized. We believe the approach to include the disclosure in subsequent quarterly filings is consistent with the interim disclosure requirements in Rule 10-01 of Regulation S-X. The primary principle in S-X 10-01 is that the financial statement user will have read the prior year's annual financial statements and the quarterly financial statements should include disclosures for significant events that occurred during the current year, such as impairments. Also, because the year-to-date information is included in each quarterly report, an impairment in one quarter would be recognized in the following quarter’s or quarters’ year-t0-date information, and thus disclosure when material would be required.

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