Designed to improve the effectiveness of disclosure requirements for fair value measurements, the proposed ASU is part of the FASB’s disclosure framework project that aims to make disclosures in the notes to financial statements more effective by clearly communicating the information that’s most important to financial statement users. According to the FASB, the ASU would improve and clarify disclosure requirements related to measuring fair value. In addition, it would identify ways to improve the FASB’s decision process.

The amendments in the proposed ASU would apply to all entities that are required under existing Generally Accepted Accounting Principles (GAAP) to make disclosures about recurring or nonrecurring fair value measurements.

Fair value measurement is one of four areas where the FASB will evaluate and improve existing disclosure requirements. The other areas are an employer’s disclosure of defined benefit plans, income taxes, and inventory.

You can view the proposed ASU at The FASB also released a useful information piece, “Decision Questions Considered in Establishing Disclosure Requirements” (, that addresses the decision questions used in the process.

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