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For all interim and annual reporting periods, there are specific quantitative and qualitative disclosures required for each class of assets and liabilities measured at fair value on the balance sheet. Reporting entities should make the disclosures with sufficient detail to permit reconciliation to the line items in the balance sheet. Quantitative disclosures should be presented in a tabular format in accordance with ASC 820-10-50-8.
Figure FSP 20-1 delineates certain fair value disclosure requirements for both recurring and nonrecurring measurements. Those specific to valuation techniques and unobservable inputs are included in Figure FSP 20-2 and to investments measured at net asset value are included in FSP 20.4. Disclosures for financial instruments not measured at fair value are discussed in FSP 20.5 and disclosures for instruments under the fair value option are in FSP 20.6.
Figure FSP 20-1 summarizes the general fair value disclosure requirements.
Figure FSP 20-1
General fair value disclosure requirements
Disclosure requirement for each class of asset and liability
ASC reference
Related information
The fair value measurement at the end of the reporting period
For nonrecurring fair value measurements, the fair value measurement at the relevant measurement date and the reasons for the measurement
For nonrecurring measurements at a date other than the end of the reporting period, the reporting entity should state the date of the measurement.
For both recurring and nonrecurring measurements, the total fair value in each level of the fair value hierarchy
(Not applicable to investments measured at NAV as a practical expedient, but applicable to investments measured at NAV – see FSP 20.5)
For public business entities, ASC 820-10-50-2E indicates that this disclosure is also applicable to assets and liabilities for which fair value is only disclosed.
For further discussion of the disclosure requirements, see FSP 20.3.1.1.
For recurring Level 3 fair value measurements, a rollforward of the beginning and ending balances (“the Level 3 rollforward”), separating:
  • Total gains or losses for the period in income
  • Total gains or losses for the period in OCI
  • The line item in the income statement or statement of comprehensive income that includes the gains and losses
  • Purchases
  • Sales
  • Issues
  • Settlements
  • Transfers in to Level 3 and the reasons for the transfers
  • Transfers out of Level 3 and the reasons for the transfers
For further discussion, see FSP 20.3.1.2.
Nonpublic entities are not required to do a full Level 3 rollforward. See FSP 20.7.
For recurring Level 3 fair value measurements:
  • Unrealized gains or losses for the period included in income
  • The line item in the income statement where the unrealized gains or losses are recognized
  • Upon adoption of ASU 2018-13, the unrealized gains or losses for the period in OCI and the line item in the statement of comprehensive income where the unrealized gains or losses are recognized
The amount disclosed as the unrealized gain/loss relating to assets and liabilities held at the end of the reporting period should be consistent with (1) the reporting entity’s policy for the timing of transfers of securities into and out of Level 3 (e.g., beginning of the period or end of the period) and (2) the amount of total gains and losses included in the Level 3 rollforward table for that period. This is because the unrealized gain/loss should only be included for the period in which the instrument was Level 3. This is illustrated in Example 20-1.
For recurring and nonrecurring fair value measurements of nonfinancial assets, the highest and best use of a nonfinancial asset when it differs from its current use, and why
ASC 820-10-50-2E  indicates that the disclosure is also applicable to assets and liabilities for which fair value is only disclosed.
The accounting policy decision to use the exception applicable to financial assets and liabilities with offsetting positions in market risks or counterparty credit risk (the “portfolio exception”)
See FV 6 for discussion of the portfolio exception.
Existence of a credit enhancement (for issuers of debt with an inseparable third- party credit enhancement that is recorded as a liability that is measured at fair value)
See FV 8 for discussion of the measurement of liabilities with inseparable third-party credit enhancements.
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