ASU 2022-03 amends ASC 820 (fair value measurement) to clarify that contractual sale restrictions are not considered in measuring the fair value of equity securities, therefore changing practice for certain entities. The ASU also indicates that a contractual sale restriction is not a separate unit of account, and requires new disclosures for all entities with equity securities subject to a contractual sale restriction.
Effective date |
Public business entities |
All other entities |
Annual periods – Fiscal years beginning after |
December 15, 2023 |
December 15, 2024 |
Interim periods – In year of adoption? |
Yes |
Yes |
Early adoption permitted? |
Yes, for both interim and annual financial statements that have not yet been issued or made available for issuance. |
The amendments to ASC 820:
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