Handbooks | December 2020

 

Insight

Handbook: Fair value measurement

Latest edition: KPMG FAQs on applying fair value measurement and disclosure guidance under US GAAP and IFRS® Standards.

Mahesh Narayanasami

Mahesh Narayanasami

Partner, Dept. of Professional Practice, KPMG US

+1 212-954-7355

Michael Hall

Michael Hall

Partner, Dept. of Professional Practice, KPMG US

+1 212-872-5665


KPMG addresses frequently asked questions about applying the fair value measurement and disclosure guidance under US GAAP and IFRS Standards. This latest edition has been updated for newly effective accounting standards and other practice developments.

Applicability

  • 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. 

Key impacts

This edition has been updated for:

  • ASU 2016-13, Measurement of credit losses on financial instruments.
  • ASU 2017-04, Simplifying the test for goodwill impairment.
  • ASU 2020-03, Codification improvements to financial instruments.
  • ASU 2020-04, Facilitation of the effects of reference rate reform on financial reporting.
  • 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

Handbook: Credit impairment

Handbook: Impairment of nonfinancial assets

Handbook: IFRS® compared to US GAAP

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