Fair Value Disclosures

Question 1

What is the difference between recurring FV items and nonrecurring FV items?

Answer 1

Recurring (assets/liabilities that are going to be reported at fair value for future periods)

Non recurring (assets or liabilities that are being measured at FV for this one period.. impairment)

Question 2

Required disclosures for recurring items measured at FV?

Answer 2

1) The FV measurements at reporting date.
2) Segregate each level (1,2,or3) into a table
3) Transfers in and out of those levels
3) Reconciliation of level 3

Question 3

Required disclosures for nonrecurring items measured at FV?

Answer 3

1) Reasons for the fair value measurement
2) The level within the hierarchy
3) Level 2 & 3: Techniques to come up with FV
4) 3- Quantitative info on unobservable inputs