# ASC 820-10-15: Fair Value Measurement — Overall — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/820/10/#15-scope-and-scope-exceptions) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T01:43:18.531Z to 2026-09-10T01:43:18.531Z Record version: sha256:8dcd6af921e5aeeda918c7e14a16dd94c17269a01b146f7c47cd6e280d587826 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 820-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/820/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [820-10-15-1](https://asc.understandingaccounting.org/asc/820/10/#820-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:18.531Z to 2026-09-10T01:43:18.531Z Record version: sha256:9ac6a8975e9a46b9d4160dd2f2cf6c838601dca7d56efe962c744b1420519475 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Scope Section of the Overall Subtopic establishes the scope for the Fair Value Measurement Topic. Except as noted below, this Topic applies when another Topic requires or permits [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") measurements or disclosures about fair value measurements (and measurements, such as fair value less costs to sell, based on fair value or disclosures about those measurements). ##### [820-10-15-1A](https://asc.understandingaccounting.org/asc/820/10/#820-10-15-1A) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:18.531Z to 2026-09-10T01:43:18.531Z Record version: sha256:abd945d099eeaa33ab589baa096b93274f5e9bb3a3cb258ffe6e0220777c30f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). #### Other Considerations ##### [820-10-15-2](https://asc.understandingaccounting.org/asc/820/10/#820-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:18.531Z to 2026-09-10T01:43:18.531Z Record version: sha256:54245ec08821137f573342cb236d762c5f09406957ba4f6ac79ea5ad54c0b86c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Fair Value Measurement Topic does not apply as follows: 1. a To accounting principles that address share-based payment transactions (this includes all Subtopics in Topic 718 except for 718-40, which is within the scope of Topic 820) 2. b To Sections, Subtopics, or Topics that require or permit measurements that are similar to fair value but that are not intended to measure fair value, including both of the following: 1. 1 Sections, Subtopics, or Topics that permit measurements that are determined on the basis of, or otherwise use, [standalone selling price](https://asc.understandingaccounting.org/glossary/s/#standalone-selling-price "The price at which an entity would sell a promised good or service separately to a customer.") 2. 2 Topic 330. 3. c [Subparagraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/). 4. d To the recognition and measurement of [revenue](https://asc.understandingaccounting.org/glossary/r/#revenue "Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.") from [contracts](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with [customers](https://asc.understandingaccounting.org/glossary/c/#customer "A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration.") in accordance with Topic 606 5. e To the recognition and measurement of gains and losses upon the derecognition of nonfinancial assets in accordance with Subtopic 610-20. #### Practicability Exceptions to This Topic ##### [820-10-15-3](https://asc.understandingaccounting.org/asc/820/10/#820-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:18.531Z to 2026-09-10T01:43:18.531Z Record version: sha256:ba7943711646c340b32c7a96ae494ae4305817a31b16d658b04ee67bbb8c7d4c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Fair Value Measurement Topic does not eliminate the practicability exceptions to fair value measurements within the scope of this Topic. Those practicability exceptions to fair value measurements in specified circumstances include, among others, those stated in the following: 1. a The use of a transaction price (an [entry price](https://asc.understandingaccounting.org/glossary/e/#entry-price "The price paid to acquire an asset or received to assume a liability in an exchange transaction.")) to measure fair value (an [exit price](https://asc.understandingaccounting.org/glossary/e/#exit-price "The price that would be received to sell an asset or paid to transfer a liability.")) at initial recognition, including the following: 1. 1 Guarantees in accordance with Topic 460 2. 2 [Subparagraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 1. 1 [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 2. 2 [Subparagraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). 3. c An exemption to the requirement to measure fair value if fair value is not reasonably determinable, such as all of the following: 1. 1 Nonmonetary assets in accordance with Topic 845 and Sections 605-20-25 and 605-20-50 2. 2 Asset retirement obligations in accordance with Subtopic 410-20 and Sections 440-10-50 and 440-10-55 3. 3 Restructuring obligations in accordance with Topic 420 4. 4 Participation rights in accordance with Subtopics 715-30 and 715-60. 4. d [Subparagraph superseded by Accounting Standards Update No. 2015-10](https://asc.understandingaccounting.org/updates/asu-2015-10/). 5. e The use of particular measurement methods referred to in paragraph [805-20-30-10](https://asc.understandingaccounting.org/asc/805/20/#805-20-30-10) that allow measurements other than fair value for specified assets acquired and liabilities assumed in a business combination. 6. ee Financial assets or financial liabilities of a consolidated variable interest entity that is a [collateralized financing entity](https://asc.understandingaccounting.org/glossary/c/#collateralized-financing-entity "A variable interest entity that holds financial assets, issues beneficial interests in those financial assets, and has no more than nominal equity. The beneficial interests have contractual recourse only to the related assets of the collateralized financing entity and are classified as financial liabilities. A collateralized financing entity may hold nonfinancial assets temporarily as a result of default by the debtor on the underlying debt instruments held as assets by the collateralized financing entity or in an effort to restructure the debt instruments held as assets by the collateralized financing entity. A collateralized financing entity also may hold other financial assets and financial liabilities that are incidental to the operations of the collateralized financing entity and have carrying values that approximate fair value (for example, cash, broker receivables, or broker payables).") when the financial assets or financial liabilities are measured using the measurement alternative in paragraphs [810-10-30-10 through 30-15](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-10) and [810-10-35-6 through 35-8](https://asc.understandingaccounting.org/asc/810/10/#810-10-35-6) . 7. f An exemption to the requirement to measure fair value if fair value cannot be reasonably estimated, such as the following: 1. 1 Noncash consideration promised in a contract in accordance with the guidance in paragraphs [606-10-32-21 through 32-24](https://asc.understandingaccounting.org/asc/606/10/#606-10-32-21) . ##### [820-10-15-4](https://asc.understandingaccounting.org/asc/820/10/#820-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:18.531Z to 2026-09-10T01:43:18.531Z Record version: sha256:f8ffe7019c87ac1428984575ce4ff68f520b1113d7c9156c45a23f1590952202 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [820-10-35-59 through 35-62](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-59) and [820-10-50-6A](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-6A) shall apply only to an investment that meets both of the following criteria as of the reporting entity's measurement date: 1. a The investment does not have a [readily determinable fair value](https://asc.understandingaccounting.org/glossary/r/#readily-determinable-fair-value "An equity security has a readily determinable fair value if it meets any of the following conditions: The fair value of an equity security is readily determinable if sales prices or bid-and-asked quotations are currently available on a securities exchange registered with the U.S. Securities and Exchange Commission (SEC) or in the over-the-counter market, provided that those prices or quotations for the over-the-counter market are publicly reported by the National Association of Securities Dealers Automated Quotations systems or by OTC Markets Group Inc. Restricted stock meets that definition if the restriction terminates within one year. The fair value of an equity security traded only in a foreign market is readily determinable if that foreign market is of a breadth and scope comparable to one of the U.S. markets referred to above. The fair value of an equity security that is an investment in a mutual fund or in a structure similar to a mutual fund (that is, a limited partnership or a venture capital entity) is readily determinable if the fair value per share (unit) is determined and published and is the basis for current transactions.") 2. b The investment is in an investment company within the scope of Topic 946 or is an investment in a real estate fund for which it is industry practice to measure investment assets at fair value on a recurring basis and to issue financial statements that are consistent with the measurement principles in Topic 946. ##### [820-10-15-5](https://asc.understandingaccounting.org/asc/820/10/#820-10-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:18.531Z to 2026-09-10T01:43:18.531Z Record version: sha256:debb151b78b992cefa303c0bbfa8682455609788c9aad2c7b14b35be1908b4db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The definition of _readily determinable fair value_ indicates that an equity security would have a readily determinable fair value if any one of three conditions is met. One of those conditions is that sales prices or bid-and-asked quotations are currently available on a securities exchange registered with the U.S. Securities and Exchange Commission (SEC) or in the over-the-counter market, provided that those prices or quotations for the over-the-counter market are publicly reported by the National Association of Securities Dealers Automated Quotations systems or by OTC Markets Group Inc. The definition notes that restricted stock meets that definition if the restriction expires within one year. If an investment otherwise would have a readily determinable fair value, except that the investment has a restriction expiring in more than one year, the reporting entity shall not apply paragraphs [820-10-35-59 through 35-62](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-59) and [820-10-50-6A](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-6A) to the investment.