FASB: Disclosures for Investments

John Glennon John Glennon

The Financial Accounting Standards Board (FASB) recently published ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). The guidance specifically clarifies how investments valued using the Net Asset Value (NAV) practical expedient within the fair value hierarchy should be classified.

The Accounting Standards Update (ASU) was issued in order to address diversity in practice. The amended standard’s key provision exempts investments measured using the NAV practical expedient as defined in ASC 820, fair value measurement, from categorisation within the fair value hierarchy and related disclosures.