Industry Insights

Fair Value Disclosures Re-Examined

December 2015

Executive Summary

On December 3, 2015, the Financial Accounting Standards Board (FASB) released a proposal refreshing the fair value disclosure requirements. The proposal will eliminate some disclosures FASB felt relied on too much subjective information and could be misinterpreted. The changes will strengthen some remaining disclosures to give investors a clearer picture of the estimates and assumptions used to determine the values.

FASB considered footnote reporting on fair value measurements as part of its multifaceted disclosure framework project, which also includes inventory, defined benefit plans and income taxes. The project was initiated in response to criticism that quarterly and annual reports are increasingly lengthy because of repetitive footnotes that sometimes bury important information.

Comments are due by Monday, February 29, 2016.

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