Q&A: Fair value measurement
KPMG addresses frequently asked questions about applying the fair value measurement guidance under US GAAP and IFRS. This latest edition includes new and updated interpretations for ASU 2018-13 and a variety of other topics.
ASC 820 and IFRS 13
All companies whose financial statements include fair value estimates, either in measuring the carrying amount of assets and/or liabilities or in note disclosures
This edition includes significant updates and new material addressing:
- ASU 2016-01, Financial instruments – recognition and measurement.
- ASU 2017-12, Hedge accounting.
- ASU 2018-09 (Issues 14 and 19), Codification improvements.
- ASU 2018-13, Changes to the fair value measurement disclosure requirements.
- IFRS 9, Financial instruments.
- Other recent practice developments and evolving interpretations.
- Scope and overview
- The item being measured and the unit of account
- Market participants
- Principal, most advantageous and inactive markets
- Valuation approaches and techniques, and inputs to valuation techniques
- Fair value hierarchy
- Highest and best use
- Liabilities and own equity instruments, and the portfolio measurement exception
- Application issues
KPMG's Defining Issues: FASB amends fair value disclosure requirements
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