Update on Classification & Disclosure of Fair Value Hierarchy

A recent accounting standards update (ASU) issued by the FASB is designed to eliminate diversity in practice among entities reporting certain fair value disclosures and simplify reporting for qualifying investments reported using the NAV as a practical expedient.

ASU 2015-07, Fair Value Measurement (Topic 820), Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) eliminates the disclosure requirement that investments that qualify for, and are reported using, the net asset value (NAV) practical expedient be categorized within the fair value hierarchy.

Learn more about the accounting standard in this MHM Messenger.

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