Q&A | December 2019


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

Relevant dates

Effective immediately

Key impacts

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.

Report contents

  • 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
  • Disclosures
  • Application issues

Related content

KPMG's Defining Issues: FASB amends fair value disclosure requirements

Spotlight on US contributors

Michael Hall

Michael Hall

Partner, DPP, KPMG US

Mahesh Narayanasami

Mahesh Narayanasami

Partner, Audit, Dept. of Professional Practice, KPMG (US)

Daniel Vance

Daniel Vance

Senior Manager, Audit, KPMG (US)

Robin Van Voorhies

Robin Van Voorhies

Director, Dept. of Professional Practice, KPMG (US)



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