Wiley GAAP 2015: Interpretation and Application of Generally Accepted Accounting Principles 2015

Chapter 49ASC 820 FAIR VALUE MEASUREMENTS

PERSPECTIVE AND ISSUES

   Subtopic

   Scope and Scope Exceptions

   Overview

   Technical Alert

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

   The Mixed Attribute Model

   Objectives

   Measurement Principles and Methodologies

   Measurement considerations

   Fair Value Disclosures

PERSPECTIVE AND ISSUES

Subtopic

ASC 820 contains one subtopic:

• ASC 820-10, Overall, which defines fair value, describes a framework for measuring fair value and details required disclosures.

Scope and Scope Exceptions

ASC 820 does not require fair value measurement in addition to those required by other Topics in the Codification.

Scope. In pursuing an incremental approach, ASC 820 contained scope exceptions for certain, highly-complex specialized applications. It does not apply to:

1. Share-based payments transactions, except for transaction covered in ASC 718-40 which are within the scope of ASC 820
2. Measurements that are similar to fair value but that are not intended to measure fair value, including:
   1. Measurements models that are based on vendor-specific objective evidence of fair value, such as multiple-deliverable arrangements and software revenue recognition
   2. Inventory
3. Accounting principles that address fair value measurements for purposes of lease classification or measurement. The exception does not apply to assets acquired and liabilities assumed in a business combination or an acquisition by a not-for-profit entity that are required to ...