# ASC 820-10-35: Fair Value Measurement — Overall — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/820/10/#35-subsequent-measurement) 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): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:21f244d6497187cc0cd536113977ab1d4b02cdaf16d30b3e935e09341374c2f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 820-10-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/820/10/#35-subsequent-measurement) SEC content: no ##### [820-10-35-1](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:ae1d7efd79e726cb61d8786eaf53e0676e2bcb61558caaf4c2649720fc3b7640 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The fair value measurement framework, which applies at both initial and subsequent measurement if [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.") is required or permitted by another Topic, is discussed primarily in this Section. Section 820-10-30 sets out additional guidance specific to applying the framework at initial measurement. This Section is organized as follows: 1. a Definition of fair value 2. b Valuation techniques 3. c [Inputs](https://asc.understandingaccounting.org/glossary/i/#inputs "The assumptions that market participants would use when pricing the asset or liability, including assumptions about risk, such as the following: The risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) The risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable.") to valuation techniques 4. d Fair value hierarchy 5. e Measuring fair value when the volume or level of activity for an asset or a liability has significantly decreased 6. f Identifying transactions that are not orderly 7. g Using quoted prices provided by third parties 8. h Measuring the fair value of investments in certain entities that calculate net asset value per share (or its equivalent). #### Definition of Fair Value ##### [820-10-35-2](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:e659b4b125f87fb17dd772660f55ef1b4b6ccb0e594210ef800ec549f8ccccc2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Topic defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an [orderly transaction](https://asc.understandingaccounting.org/glossary/o/#orderly-transaction "A transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (for example, a forced liquidation or distress sale).") between [market participants](https://asc.understandingaccounting.org/glossary/m/#market-participants "Buyers and sellers in the principal (or most advantageous) market for the asset or liability that have all of the following characteristics: They are independent of each other, that is, they are not related parties, although the price in a related-party transaction may be used as an input to a fair value measurement if the reporting entity has evidence that the transaction was entered into at market terms They are knowledgeable, having a reasonable understanding about the asset or liability and the transaction using all available information, including information that might be obtained through due diligence efforts that are usual and customary They are able to enter into a transaction for the asset or liability They are willing to enter into a transaction for the asset or liability, that is, they are motivated but not forced or otherwise compelled to do so.") at the measurement date. 1. a [Subparagraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). 3. c [Subparagraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). 4. d [Subparagraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). 5. e [Subparagraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). 6. f [Subparagraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). ##### [820-10-35-2A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-2A) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:25a23f4bceafbb93e98020f81c2c549d9d2d0f0f61ee363372a87d3616dc166f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The remainder of this guidance is organized as follows: 1. a The asset or liability 2. b The transaction 3. c Market participants 4. d The price 5. e Application to nonfinancial assets 6. f Application to liabilities and instruments classified in a reporting entity's shareholders' equity 7. g Application to financial assets, financial liabilities, and nonfinancial items accounted for as derivatives under Topic 815with offsetting positions in [market risks](https://asc.understandingaccounting.org/glossary/m/#market-risk "The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises the following: Interest rate risk Currency risk Other price risk.") or counterparty credit risk. ##### [820-10-35-2B](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-2B) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:e13c88820af61c3dda278f79f87fde6cd464d99d25dfc5c42179bf0c05c5561e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A fair value measurement is for a particular asset or liability. Therefore, when measuring fair value a reporting entity shall take into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Such characteristics include, for example, the following: 1. a The condition and location of the asset 2. b Restrictions, if any, on the sale or use of the asset. ##### [820-10-35-2C](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-2C) Pending content: yes Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:6aa91e8d2d6e58149bf39f0358a221d91e7d5e29b09454f5a5a42b9a11a7826e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The effect on the measurement arising from a particular characteristic will differ depending on how that characteristic would be taken into account by market participants. Paragraph [820-10-55-51](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-51) illustrates a restriction's effect on fair value measurement. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [820-10-65-14](https://asc.understandingaccounting.org/asc/820/10/#820-10-65-14)The effect on the measurement arising from a particular characteristic will differ depending on how that characteristic would be taken into account by market participants. Paragraph [820-10-55-51](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-51) illustrates a restriction's effect on fair value measurement. Paragraph [820-10-35-36BBB](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-36BBB) provides an exception that requires investment companies within the scope of Topic 946 to incorporate contractual sale restrictions in the fair value measurement of equity securities. ##### [820-10-35-2D](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-2D) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:0f351ef9e9d85e56f44d40bbd531f40aa4ee90aa64770a34620e4e85d263c4d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The asset or liability measured at fair value might be either of the following: 1. a A standalone asset or liability (for example, a [financial instrument](https://asc.understandingaccounting.org/glossary/f/#financial-instrument "Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. All contractual rights (contractual obligations) that are financial instruments meet the definition of asset (liability) set forth in FASB Concepts Statement No. 6, Elements of Financial Statements, although some may not be recognized as assets (liabilities) in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity. (P) December 16, 2024; (N) December 16, 2025105-10-65-9Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. Some contractual rights (contractual obligations) that are financial instruments may not be recognized in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity.") or a nonfinancial asset) 2. b A group of assets, a group of liabilities, or a group of assets and liabilities (for example, a reporting unit or a business). ##### [820-10-35-2E](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-2E) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:d05bc5a83f07bfe219b00e1035d58649961f4f65bdf36de37d2e845b917a30d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Whether the asset or liability is a standalone asset or liability, a group of assets, a group of liabilities, or a group of assets and liabilities for recognition or disclosure purposes depends on its [unit of account](https://asc.understandingaccounting.org/glossary/u/#unit-of-account "The level at which an asset or a liability is aggregated or disaggregated in a Topic for recognition purposes."). The unit of account for the asset or liability shall be determined in accordance with the Topic that requires or permits the fair value measurement, except as provided in this Topic. ##### [820-10-35-3](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:58112cd9b23a1ef9b8424662faf1050a3463a57a03e29229c7f3c9e34bb0f8e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A fair value measurement assumes that the asset or liability is exchanged in an orderly transaction between market participants to sell the asset or transfer the liability at the measurement date under current market conditions. ##### [820-10-35-4](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:78595d0867580c2775f617d89ae4fd804a95cb74506199748a25f018809cb982 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). ##### [820-10-35-5](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:6d2773bf225764413bbec94c261c861eb7958695db31ede05027634d18dfe52a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either: 1. a In the [principal market](https://asc.understandingaccounting.org/glossary/p/#principal-market "The market with the greatest volume and level of activity for the asset or liability.") for the asset or liability 2. b In the absence of a principal market, in the [most advantageous market](https://asc.understandingaccounting.org/glossary/m/#most-advantageous-market "The market that maximizes the amount that would be received to sell the asset or minimizes the amount that would be paid to transfer the liability, after taking into account transaction costs and transportation costs.") for the asset or liability. ##### [820-10-35-5A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-5A) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:ed705e0afcf1bc17818c69612edbf9be3e55582caf937ecf86ab26780dbec0af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A reporting entity need not undertake an exhaustive search of all possible markets to identify the principal market or, in the absence of a principal market, the most advantageous market, but it shall take into account all information that is reasonably available. In the absence of evidence to the contrary, the market in which the reporting entity normally would enter into a transaction to sell the asset or to transfer the liability is presumed to be the principal market or, in the absence of a principal market, the most advantageous market. ##### [820-10-35-6](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:cc830fe2f0cbec045547afc4a6cdae1ba28bb69a363b85c6661947db613da379 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If there is a principal market for the asset or liability, the fair value measurement shall represent the price in that market (whether that price is directly observable or estimated using another valuation technique), even if the price in a different market is potentially more advantageous at the measurement date. ##### [820-10-35-6A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-6A) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:9185eb256e03f5baef44c6364a6d49488b56a5138ebd72da98d1925c13a4d68e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The reporting entity must have access to the principal (or most advantageous) market at the measurement date. Because different entities (and businesses within those entities) with different activities may have access to different markets, the principal (or most advantageous) market for the same asset or liability might be different for different entities (and businesses within those entities). Therefore, the principal (or most advantageous) market (and thus, market participants) shall be considered from the perspective of the reporting entity, thereby allowing for differences between and among entities with different activities. ##### [820-10-35-6B](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-6B) Pending content: yes Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:9c05edaf40d4677d7366a67f7b53dbf854c6010205857977747750c990715c8a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although a reporting entity must be able to access the market, the reporting entity does not need to be able to sell the particular asset or transfer the particular liability on the measurement date to be able to measure fair value on the basis of the price in that market. For example, an [equity security](https://asc.understandingaccounting.org/glossary/e/#equity-security "Any security representing an ownership interest in an entity (for example, common, preferred, or other capital stock) or the right to acquire (for example, warrants, rights, forward purchase contracts, and call options) or dispose of (for example, put options and forward sale contracts) an ownership interest in an entity at fixed or determinable prices. The term equity security does not include any of the following: Written equity options (because they represent obligations of the writer, not investments) Cash-settled options on equity securities or options on equity-based indexes (because those instruments do not represent ownership interests in an entity) Convertible debt or preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor.") that an entity cannot sell on the measurement date because of a contractual sale restriction shall be measured at fair value on the basis of the price in the principal (or most advantageous) market. A contractual sale restriction does not change the market in which that equity security would be sold (see paragraphs [820-10-55-52 through 55-52A](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-52) ). Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [820-10-65-14](https://asc.understandingaccounting.org/asc/820/10/#820-10-65-14)Although a reporting entity must be able to access the market, the reporting entity does not need to be able to sell the particular asset or transfer the particular liability on the measurement date to be able to measure fair value on the basis of the price in that market. For example, an [equity security](https://asc.understandingaccounting.org/glossary/e/#equity-security "Any security representing an ownership interest in an entity (for example, common, preferred, or other capital stock) or the right to acquire (for example, warrants, rights, forward purchase contracts, and call options) or dispose of (for example, put options and forward sale contracts) an ownership interest in an entity at fixed or determinable prices. The term equity security does not include any of the following: Written equity options (because they represent obligations of the writer, not investments) Cash-settled options on equity securities or options on equity-based indexes (because those instruments do not represent ownership interests in an entity) Convertible debt or preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor.") that an entity cannot sell on the measurement date because of a contractual sale restriction shall be measured at fair value on the basis of the price in the principal (or most advantageous) market. A contractual sale restriction does not change the market in which that equity security would be sold (see paragraphs [820-10-55-52 through 55-52B](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-52) ). ##### [820-10-35-6C](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-6C) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:7c5981f8a97fc5509e181f9044b66b7a246ca8ecd858a4d7b1d6de427e93e5cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Even when there is no observable market to provide pricing information about the sale of an asset or the transfer of a liability at the measurement date, a fair value measurement shall assume that a transaction takes place at that date, considered from the perspective of a market participant that holds the asset or owes the liability. That assumed transaction establishes a basis for estimating the price to sell the asset or to transfer the liability. ##### [820-10-35-7](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:55e8205fc08f12e4b70dd5fa457697b4f7d0df8242bb518c31f0340d49963159 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). ##### [820-10-35-8](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:9d0ba727ae93fe817d7ce709c2f6cdd0062fab5512e2f1fdb2f52fc7358eca81 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). ##### [820-10-35-9](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:c4e18f0700428d3d97818f0da6dcc5c42d9c8a29db8fd8ca863e812187b7bc70 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A reporting entity shall measure the fair value of an asset or a liability using the assumptions that market participants would use in pricing the asset or liability, assuming that market participants act in their economic best interest. In developing those assumptions, a reporting entity need not identify specific market participants. Rather, the reporting entity shall identify characteristics that distinguish market participants generally, considering factors specific to all of the following: 1. a The asset or liability 2. b The principal (or most advantageous) market for the asset or liability 3. c Market participants with whom the reporting entity would enter into a transaction in that market. ##### [820-10-35-9A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-9A) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:f823d2809a62622427a6a9d48c92ad40ca364a24d43761cbc9273d1d1a4362ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (that is, 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.")) regardless of whether that price is directly observable or estimated using another valuation technique. ##### [820-10-35-9B](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-9B) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:7d738ab8f7bea6cf6e66fdedf792a4ab5bc08c61663367ed444602e4d2e5fff5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for [transaction costs](https://asc.understandingaccounting.org/glossary/t/#transaction-costs "The costs to sell an asset or transfer a liability in the principal (or most advantageous) market for the asset or liability that are directly attributable to the disposal of the asset or the transfer of the liability and meet both of the following criteria: They result directly from and are essential to that transaction. They would not have been incurred by the entity had the decision to sell the asset or transfer the liability not been made (similar to costs to sell, as defined in paragraph 360-10-35-38)."). Transaction costs shall be accounted for in accordance with other Topics. Transaction costs are not a characteristic of an asset or a liability; rather, they are specific to a transaction and will differ depending on how a reporting entity enters into a transaction for the asset or liability. ##### [820-10-35-9C](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-9C) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:c6b1b554a05ffb29eb9a182cab8979f72af2d5b90708ddc469f0e1be0ec0c583 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transaction costs do not include [transportation costs](https://asc.understandingaccounting.org/glossary/t/#transportation-costs "The costs that would be incurred to transport an asset from its current location to its principal (or most advantageous) market."). If location is a characteristic of the asset (as might be the case, for example, for a commodity), the price in the principal (or most advantageous) market shall be adjusted for the costs, if any, that would be incurred to transport the asset from its current location to that market. ##### [820-10-35-10](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:6f9d2b6b86c68f98fa34071913c0c6b1391c3227b3957fa90e7d4362ff00ef18 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). ##### [820-10-35-10A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-10A) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:ea7b11c5a4109c198ec21c57491b4cda16089e7391846e0227654543eba681c9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A fair value measurement of a nonfinancial asset takes into account a market participant's ability to generate economic benefits by using the asset in its [highest and best use](https://asc.understandingaccounting.org/glossary/h/#highest-and-best-use "The use of a nonfinancial asset by market participants that would maximize the value of the asset or the group of assets and liabilities (for example, a business) within which the asset would be used.") or by selling it to another market participant that would use the asset in its highest and best use. ##### [820-10-35-10B](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-10B) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:377f7122f0e1a8dde8a36b23285b420bbb06746dad0fc17b0ffffda72d5459c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The highest and best use of a nonfinancial asset takes into account the use of the asset that is physically possible, legally permissible, and financially feasible, as follows: 1. a A use that is physically possible takes into account the physical characteristics of the asset that market participants would take into account when pricing the asset (for example, the location or size of a property). 2. b A use that is legally permissible takes into account any legal restrictions on the use of the asset that market participants would take into account when pricing the asset (for example, the zoning regulations applicable to a property). 3. c A use that is financially feasible takes into account whether a use of the asset that is physically possible and legally permissible generates adequate income or cash flows (taking into account the costs of converting the asset to that use) to produce an investment return that market participants would require from an investment in that asset put to that use. ##### [820-10-35-10C](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-10C) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:a1620aa71590ace34a12cdeb4823b822bea8909735fc70fed3216b156192f2ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Highest and best use is determined from the perspective of market participants, even if the reporting entity intends a different use. However, a reporting entity's current use of a nonfinancial asset is presumed to be its highest and best use unless market or other factors suggest that a different use by market participants would maximize the value of the asset. ##### [820-10-35-10D](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-10D) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:88ce7d1e142b49be4d9cda34115b4b21d86205a6d4347e651e380320142f7558 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To protect its competitive position, or for other reasons, a reporting entity may intend not to use an acquired nonfinancial asset actively, or it may intend not to use the asset according to its highest and best use. For example, that might be the case for an acquired intangible asset that the reporting entity plans to use defensively by preventing others from using it. Nevertheless, the reporting entity shall measure the fair value of a nonfinancial asset assuming its highest and best use by market participants. ##### [820-10-35-10E](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-10E) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:2505c86d035f3817d12653abf0b834b5d800a17b7c54576372850235dd3d9f6f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The highest and best use of a nonfinancial asset establishes the valuation premise used to measure the fair value of the asset, as follows: 1. a The highest and best use of a nonfinancial asset might provide maximum value to market participants through its use in combination with other assets as a group (as installed or otherwise configured for use) or in combination with other assets and liabilities (for example, a business). 1. 1 If the highest and best use of the asset is to use the asset in combination with other assets or with other assets and liabilities, the fair value of the asset is the price that would be received in a current transaction to sell the asset assuming that the asset would be used with other assets or with other assets and liabilities and that those assets and liabilities (that is, its complementary assets and the associated liabilities) would be available to market participants. 2. 2 Liabilities associated with the asset and with the complementary assets include liabilities that fund working capital, but do not include liabilities used to fund assets other than those within the group of assets. 3. 3 Assumptions about the highest and best use of a nonfinancial asset shall be consistent for all of the assets (for which highest and best use is relevant) of the group of assets or the group of assets and liabilities within which the asset would be used. 2. b The highest and best use of a nonfinancial asset might provide maximum value to market participants on a standalone basis. If the highest and best use of the asset is to use it on a standalone basis, the fair value of the asset is the price that would be received in a current transaction to sell the asset to market participants that would use the asset on a standalone basis. ##### [820-10-35-11](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-11) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:f98e9b99fea3b449df87ab9dc24e95f0016f4021176ae930c4f439ec24de88d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). ##### [820-10-35-11A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-11A) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:afa78697294eef21b7694a2c553c67afa9a995a72657a137dc70d594983542d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The fair value measurement of a nonfinancial asset assumes that the asset is sold consistent with the unit of account specified in other Topics (which may be an individual asset). That is the case even when that fair value measurement assumes that the highest and best use of the asset is to use it in combination with other assets or with other assets and liabilities because a fair value measurement assumes that the market participant already holds the complementary assets and associated liabilities. ##### [820-10-35-12](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-12) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:20b7430e1da9e8dbdf0590360f5265890e962c028207abc2440fa93973c61f1a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). ##### [820-10-35-13](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-13) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:055f47d0d0aa7a9a74f76d541ddb4e08fa5459b33b1e008ba0fd68d1f4a8a3f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). ##### [820-10-35-14](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-14) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:df30f6b380bd222158301163442a729a4a34eec0c54f9403da9065ca7c17613e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [820-10-55-25](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-25) illustrates the application of the highest and best use and valuation premise concepts for nonfinancial assets. ##### [820-10-35-15](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-15) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:d0af490651ec3edc5fd6fe0e555a74ae587c841602797eeddc0dfe2a5aeba08c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). ##### [820-10-35-15A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-15A) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:9dac7dc2b7b0a36d3eb330860bdf536732eab44beaca8b8d715e6f9bb6195ffd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [820-10-35-16](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-16) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:5662912a61e121762ec1db4fc32ec8cd34e8106c44e61a765c5574885986ba3e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A fair value measurement assumes that a financial or nonfinancial liability or an instrument classified in a reporting entity's shareholders' equity (for example, equity interests issued as consideration in a business combination) is transferred to a market participant at the measurement date. The transfer of a liability or an instrument classified in a reporting entity's shareholders' equity assumes the following: 1. a [Subparagraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). 2. b A liability would remain outstanding and the market participant transferee would be required to fulfill the obligation. The liability would not be settled with the counterparty or otherwise extinguished on the measurement date. 3. c An instrument classified in a reporting entity's shareholders' equity would remain outstanding and the market participant transferee would take on the rights and responsibilities associated with the instrument. The instrument would not be cancelled or otherwise extinguished on the measurement date. ##### [820-10-35-16A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-16A) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:01555a545062b8772f8e44e25ed20d5c15522ec8719fa44f41d05665adda7b6e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Even when there is no observable market to provide pricing information about the transfer of a liability or an instrument classified in a reporting entity's shareholders' equity (for example, because contractual or other legal restrictions prevent the transfer of such items), there might be an observable market for such items if they are held by other parties as assets (for example, a corporate bond or a call option on a reporting entity's shares). ##### [820-10-35-16AA](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-16AA) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:4602b68e1715b10b0f09de91cb84b4bdd0c0a8a7588fce95273331f6cdaa9e06 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In all cases, a reporting entity shall maximize the use of relevant [observable inputs](https://asc.understandingaccounting.org/glossary/o/#observable-inputs "Inputs that are developed using market data, such as publicly available information about actual events or transactions, and that reflect the assumptions that market participants would use when pricing the asset or liability.") and minimize the use of [unobservable inputs](https://asc.understandingaccounting.org/glossary/u/#unobservable-inputs "Inputs for which market data are not available and that are developed using the best information available about the assumptions that market participants would use when pricing the asset or liability.")to meet the objective of a fair value measurement, which is to estimate the price at which an orderly transaction to transfer the liability or instrument classified in shareholders' equity would take place between market participants at the measurement date under current market conditions. ##### [820-10-35-16B](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-16B) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:ef726dad06bb8ec20c7009e94be56d8f10a18ce89b78c4cee2be604ff4e9be14 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a quoted price for the transfer of an identical or a similar liability or instrument classified in a reporting entity's shareholders' equity is not available and the identical item is held by another party as an asset, a reporting entity shall measure the fair value of the liability or equity instrument from the perspective of a market participant that holds the identical item as an asset at the measurement date. 1. a [Subparagraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). ##### [820-10-35-16BB](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-16BB) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:bdaccc6724effdbd8aed78ec29b9b268628696c3ef44d2d65e6feb46db211ba9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In such cases, a reporting entity shall measure the fair value of the liability or equity instrument as follows: 1. a Using the quoted price in an active market for the identical item held by another party as an asset, if that price is available 2. b If that price is not available, using other observable inputs, such as the quoted price in a market that is not active for the identical item held by another party as an asset 3. c If the observable prices in (a) and (b) are not available, using another valuation approach, such as: 1. 1 An income approach (for example, a present value technique that takes into account the future cash flows that a market participant would expect to receive from holding the liability or equity instrument as an asset; see paragraph [820-10-55-3F](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-3F)) 2. 2 A market approach (for example, using quoted prices for similar liabilities or instruments classified in shareholders' equity held by other parties as assets; see paragraph [820-10-55-3A](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-3A)). ##### [820-10-35-16C](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-16C) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:30bdaf06f495fc08173146568e8c72da8c7aa17454084880dfce1e6fa8783793 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). ##### [820-10-35-16D](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-16D) Pending content: yes Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:6fdf649567f77c15dac423253a50bf9f1f7570966324a0f5e20873414b37200e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When measuring the fair value of a liability or an equity instrument held by another party as an asset, a reporting entity shall adjust the quoted price of the asset only if there are factors specific to the asset that are not applicable to the fair value measurement of the liability or equity instrument. When the asset held by another party includes a characteristic restricting its sale, (see paragraphs [820-10-35-6B](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-6B) and [820-10-35-36B](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-36B)), the fair value of the corresponding liability or equity instrument also would include the effect of the restriction. Some factors that may indicate that the quoted price of the asset should be adjusted include the following: 1. a The quoted price for the asset relates to a similar (but not identical) liability or equity instrument held by another party as an asset. For example, the liability or equity instrument may have a particular characteristic (for example, the credit quality of the issuer) that is different from that reflected in the fair value of the similar liability or equity instrument held as an asset. 2. b The unit of account for the asset is not the same as for the liability or equity instrument. For example, for liabilities, in some cases the price for an asset reflects a combined price for a package comprising both the amounts due from the issuer and a third-party credit enhancement. If the unit of account for the liability is not for the combined package, the objective is to measure the fair value of the issuer's liability, not the fair value of the combined package. Thus, in such cases, the reporting entity would adjust the observed price for the asset to exclude the effect of the third-party credit enhancement. See paragraph [820-10-35-18A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18A) for further guidance. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [820-10-65-14](https://asc.understandingaccounting.org/asc/820/10/#820-10-65-14)When measuring the fair value of a liability or an equity instrument held by another party as an asset, a reporting entity shall adjust the quoted price of the asset only if there are factors specific to the asset that are not applicable to the fair value measurement of the liability or equity instrument. When the asset held by another party includes a characteristic restricting its sale (see paragraphs [820-10-35-6B](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-6B) and [820-10-35-36BB](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-36BB)), the fair value of the corresponding liability or equity instrument also would include the effect of the restriction. Some factors that may indicate that the quoted price of the asset should be adjusted include the following: 1. a The quoted price for the asset relates to a similar (but not identical) liability or equity instrument held by another party as an asset. For example, the liability or equity instrument may have a particular characteristic (for example, the credit quality of the issuer) that is different from that reflected in the fair value of the similar liability or equity instrument held as an asset. 2. b The unit of account for the asset is not the same as for the liability or equity instrument. For example, for liabilities, in some cases the price for an asset reflects a combined price for a package comprising both the amounts due from the issuer and a third-party credit enhancement. If the unit of account for the liability is not for the combined package, the objective is to measure the fair value of the issuer's liability, not the fair value of the combined package. Thus, in such cases, the reporting entity would adjust the observed price for the asset to exclude the effect of the third-party credit enhancement. See paragraph [820-10-35-18A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18A) for further guidance. ##### [820-10-35-16E](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-16E) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:d9acef7489f8b36347dd793ab95b4c11ac8a213642ce5e766fc9344d6870fc23 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 820-10-35-16E through 35-16G superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-16E). ##### [820-10-35-16H](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-16H) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:058ca855127e0aaa0acce669c26df87dd5148c0dbeba2a10ed63cd1860659a43 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a quoted price for the transfer of an identical or a similar liability or instrument classified in a reporting entity's shareholders' equity is not available and the identical item is not held by another party as an asset, a reporting entity shall measure the fair value of the liability or equity instrument using a valuation technique from the perspective of a market participant that owes the liability or has issued the claim on equity. ##### [820-10-35-16I](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-16I) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:d48ea4b6eebd2ea0a81a50fb117df91df1ad488bb14565a3cced9a0b3b14300d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, when applying a present value technique, a reporting entity might take into account either of the following: 1. a The future cash outflows that a market participant would expect to incur in fulfilling the obligation, including the compensation that a market participant would require for taking on the obligation (see paragraphs [820-10-35-16J through 35-16K](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-16J) ). 2. b The amount that a market participant would receive to enter into or issue an identical liability or equity instrument, using the assumptions that market participants would use when pricing the identical item (for example, having the same credit characteristics) in the principal (or most advantageous) market for issuing a liability or an equity instrument with the same contractual terms. ##### [820-10-35-16J](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-16J) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:c0470888cef5e29b427253d4a175cabef15a1a346553b5a820154d257864b2b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When using a present value technique to measure the fair value of a liability that is not held by another party as an asset (for example, an asset retirement obligation), a reporting entity shall, among other things, estimate the future cash outflows that market participants would expect to incur in fulfilling the obligation. Those future cash outflows shall include market participants' expectations about the costs of fulfilling the obligation and the compensation that a market participant would require for taking on the obligation. Such compensation includes the return that a market participant would require for the following: 1. a Undertaking the activity (that is, the value of fulfilling the obligation—for example, by using resources that could be used for other activities) 2. b Assuming the risk associated with the obligation (that is, a [risk premium](https://asc.understandingaccounting.org/glossary/r/#risk-premium "Compensation sought by risk-averse market participants for bearing the uncertainty inherent in the cash flows of an asset or a liability. Also referred to as a risk adjustment.") that reflects the risk that the actual cash outflows might differ from the expected cash outflows; see paragraph [820-10-35-16L](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-16L)). ##### [820-10-35-16K](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-16K) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:05c18208723fc504de4d7259aaa5f6c78b169107dda486ddc91ecad6ca68b296 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, a nonfinancial liability does not contain a contractual rate of return and there is no observable market yield for that liability. In some cases, the components of the return that market participants would require will be indistinguishable from one another (for example, when using the price a third-party contractor would charge on a fixed-fee basis). In other cases, a reporting entity needs to estimate those components separately (for example, when using the price a third-party contractor would charge on a cost-plus basis because the contractor in that case would not bear the risk of future changes in costs). ##### [820-10-35-16L](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-16L) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:8c8336efc593fbb7a6ca495a8b1c70006d77bd966017bbdd6ca6d69c303c4331 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A reporting entity can include a risk premium in the fair value measurement of a liability or an instrument classified in a reporting entity's shareholders' equity that is not held by another party as an asset in one of the following ways: 1. a By adjusting the cash flows (that is, as an increase in the amount of cash outflows) 2. b By adjusting the rate used to discount the future cash flows to their present values (that is, as a reduction in the discount rate). A reporting entity shall ensure that it does not double count or omit adjustments for risk. For example, if the estimated cash flows are increased to take into account the compensation for assuming the risk associated with the obligation, the discount rate should not be adjusted to reflect that risk. ##### [820-10-35-17](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-17) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:e855138beab29578280992c41f060b74f5e442d5a671f6e3102081b001cb77cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The fair value of a liability reflects the effect of [nonperformance risk](https://asc.understandingaccounting.org/glossary/n/#nonperformance-risk "The risk that an entity will not fulfill an obligation. Nonperformance risk includes, but may not be limited to, the reporting entity's own credit risk."). Nonperformance risk includes, but may not be limited to, a reporting entity's own [credit risk](https://asc.understandingaccounting.org/glossary/c/#credit-risk "For purposes of a hedged item in a fair value hedge, credit risk is the risk of changes in the hedged item's fair value attributable to both of the following: Changes in the obligor's creditworthiness Changes in the spread over the benchmark interest ratewith respect to the hedged item's credit sector at inception of the hedge. For purposes of a hedged transaction in a cash flow hedge, credit risk is the risk of changes in the hedged transaction's cash flows attributable to all of the following: Default Changes in the obligor's creditworthiness Changes in the spread over the contractually specified interest rate or the benchmark interest rate with respect to the related financial asset's or liability's credit sector at inception of the hedge."). Nonperformance risk is assumed to be the same before and after the transfer of the liability. ##### [820-10-35-18](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:086ffa8f3413e2c8aa7c05014adec64bbb812e137813c41df8742bde1a8abca5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When measuring the fair value of a liability, a reporting entity shall take into account the effect of its credit risk (credit standing) and any other factors that might influence the likelihood that the obligation will or will not be fulfilled. That effect may differ depending on the liability, for example: 1. a Whether the liability is an obligation to deliver cash (a financial liability) or an obligation to deliver goods or services (a nonfinancial liability) 2. b The terms of credit enhancements related to the liability, if any. Paragraph [820-10-55-56](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-56) illustrates the effect of credit risk on the fair value measurement of a liability. ##### [820-10-35-18A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18A) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:4a5ff41730e016479e997cb0396d08e1e791140d54664372fcc09cdf97d8fb31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The fair value of a liability reflects the effect of nonperformance risk on the basis of its unit of account. In accordance with Topic 825, the issuer of a [liability issued with an inseparable third-party credit enhancement](https://asc.understandingaccounting.org/glossary/l/#liability-issued-with-an-inseparable-third-party-credit-enhancement "A liability that is issued with a credit enhancement obtained from a third party, such as debt that is issued with a financial guarantee from a third party that guarantees the issuer's payment obligation.") that is accounted for separately from the liability shall not include the effect of the credit enhancement (for example, a third-party guarantee of debt) in the fair value measurement of the liability.If the credit enhancement is accounted for separately from the liability, the issuer would take into account its own credit standing and not that of the third-party guarantor when measuring the fair value of the liability. ##### [820-10-35-18B](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18B) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:0373166fb109a5c79ea2ca0fe53345c4eb6c77aa12850539182ed521dbb03240 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When measuring the fair value of a liability or an instrument classified in a reporting entity's shareholders' equity, a reporting entity shall not include a separate input or an adjustment to other inputs relating to the existence of a restriction that prevents the transfer of the item. The effect of a restriction that prevents the transfer of a liability or an instrument classified in a reporting entity's shareholders' equity is either implicitly or explicitly included in the other inputs to the fair value measurement. ##### [820-10-35-18C](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18C) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:e8d1ec671ba4af3bce0bc057f23ef56d30593d9de91b24b83fcc4154cd35fd85 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, at the transaction date, both the creditor and the obligor accepted the transaction price for the liability with full knowledge that the obligation includes a restriction that prevents its transfer. As a result of the restriction being included in the transaction price, a separate input or an adjustment to an existing input is not required at the transaction date to reflect the effect of the restriction on transfer. Similarly, a separate input or an adjustment to an existing input is not required at subsequent measurement dates to reflect the effect of the restriction on transfer. ##### [820-10-35-18D](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18D) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:72cfdb4e104702f8243e19910b6c126d325d0c9ab38f9a3bd6d0b68d18707696 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A reporting entity that holds a group of [financial assets](https://asc.understandingaccounting.org/glossary/f/#financial-asset "Cash, evidence of an ownership interest in an entity, or a contract that conveys to one entity a right to do either of the following: Receive cash or another financial instrument from a second entity Exchange other financial instruments on potentially favorable terms with the second entity."), [financial liabilities](https://asc.understandingaccounting.org/glossary/f/#financial-liability "A contract that imposes on one entity an obligation to do either of the following:Deliver cash or another financial instrument to a second entity Exchange other financial instruments on potentially unfavorable terms with the second entity."), nonfinancial items accounted for as derivatives in accordance with Topic 815, or combinations of these items is exposed to market risks (that is, [interest rate risk](https://asc.understandingaccounting.org/glossary/i/#interest-rate-risk "For recognized variable-rate financial instruments and forecasted issuances or purchases of variable-rate financial instruments, interest rate risk is the risk of changes in the hedged item's cash flows attributable to changes in the contractually specified interest rate in the agreement. For recognized fixed-rate financial instruments, interest rate risk is the risk of changes in the hedged item's fair value attributable to changes in the designated benchmark interest rate. For forecasted issuances or purchases of fixed-rate financial instruments, interest rate risk is the risk of changes in the hedged item's cash flows attributable to changes in the designated benchmark interest rate."), [currency risk](https://asc.understandingaccounting.org/glossary/c/#currency-risk "The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates."), or [other price risk](https://asc.understandingaccounting.org/glossary/o/#other-price-risk "The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer or by factors affecting all similar financial instruments traded in the market.")) and to the credit risk of each of the counterparties. If the reporting entity manages that group of financial assets, financial liabilities, nonfinancial items accounted for as derivatives in accordance with Topic 815, or combinations of these items on the basis of its net exposure to either market risks or credit risk, the reporting entity is permitted to apply an exception to this Topic for measuring fair value. That exception permits a reporting entity to measure the fair value of a group of financial assets, financial liabilities, nonfinancial items accounted for as derivatives in accordance with Topic 815, or combinations of these items on the basis of the price that would be received to sell a net long position (that is, an asset) for a particular risk exposure or paid to transfer a net short position (that is, a liability) for a particular risk exposure in an orderly transaction between market participants at the measurement date under current market conditions. Accordingly, a reporting entity shall measure the fair value of the group of financial assets, financial liabilities, nonfinancial items accounted for as derivatives in accordance with Topic 815, or combinations of these items consistently with how market participants would price the net risk exposure at the measurement date. ##### [820-10-35-18E](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18E) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:b412926ec96e9d2b02b578fa576db78c8ee88565ff8c01d6d894af3bacf9f96e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A reporting entity is permitted to use the exception in paragraph [820-10-35-18D](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18D) only if the reporting entity does all of the following: 1. a Manages the group of financial assets, financial liabilities, nonfinancial items accounted for as derivatives in accordance with Topic 815, or combinations of these items on the basis of the reporting entity's net exposure to a particular market risk (or risks) or to the credit risk of a particular counterparty in accordance with the reporting entity's documented risk management or investment strategy 2. b Provides information on that basis about the group of financial assets, financial liabilities, nonfinancial items accounted for as derivatives in accordance with Topic 815, or combinations of these items to the reporting entity's [management](https://asc.understandingaccounting.org/glossary/m/#management "Persons who are responsible for achieving the objectives of the entity and who have the authority to establish policies and make decisions by which those objectives are to be pursued. Management normally includes members of the board of directors, the chief executive officer, chief operating officer, vice presidents in charge of principal business functions (such as sales, administration, or finance), and other persons who perform similar policy making functions. Persons without formal titles also may be members of management.") 3. c Is required or has elected to measure those financial assets, financial liabilities, nonfinancial items accounted for as derivatives in accordance with Topic 815, or combinations of these items at fair value in the statement of financial position at the end of each reporting period. ##### [820-10-35-18F](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18F) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:ae281eb59730d7e644d340e0c9285661cff221b483ed05b57525f6fa82477ab3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The exception in paragraph [820-10-35-18D](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18D) does not pertain to financial statement presentation. In some cases, the basis for the presentation of financial instruments in the statement of financial position differs from the basis for the measurement of financial instruments, for example, if a Topic does not require or permit financial instruments to be presented on a net basis. In such cases, a reporting entity may need to allocate the portfolio-level adjustments (see paragraphs [820-10-35-18I through 35-18L](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18I) ) to the individual assets or liabilities that make up the group of financial assets, financial liabilities, nonfinancial items accounted for as derivatives in accordance with Topic 815, or combinations of these items managed on the basis of the reporting entity's net risk exposure. A reporting entity shall perform such allocations on a reasonable and consistent basis using a methodology appropriate in the circumstances. ##### [820-10-35-18G](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18G) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:418291605c9b24493a37129773d5c1dc52d8f750e96370d8e7cd98176e42198e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A reporting entity shall make an accounting policy decision to use the exception in paragraph [820-10-35-18D](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18D). A reporting entity that uses the exception shall apply that accounting policy, including its policy for allocating bid-ask adjustments (see paragraphs [820-10-35-18I through 35-18K](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18I) ) and credit adjustments (see paragraph [820-10-35-18L](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18L)), if applicable, consistently from period to period for a particular portfolio. ##### [820-10-35-18H](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18H) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:9ab9d31a46a6025bda88962dca2678ba2730a7aecef80d7301a428bc51126ba3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The exception in paragraph [820-10-35-18D](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18D) applies only to financial assets and financial liabilities within the scope of Topic 815 or Topic 825and nonfinancial items accounted for as derivatives in accordance with Topic 815. ##### [820-10-35-18I](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18I) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:5eba1906cb19849449a4da33362b9dd8868371dc9ada3ea2a039c06d96920f23 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When using the exception in paragraph [820-10-35-18D](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18D) to measure the fair value of a group of financial assets, financial liabilities, nonfinancial items accounted for as derivatives in accordance with Topic 815, or combinations of these items managed on the basis of the reporting entity's net exposure to a particular market risk (or risks), the reporting entity shall apply the price within the bid-ask spread that is most representative of fair value in the circumstances to the reporting entity's net exposure to those market risks (see paragraphs [820-10-35-36C through 35-36D](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-36C) ). ##### [820-10-35-18J](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18J) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:9e27538f2d0c0cf67c75a9ec4d6b3ba272972e2dd206a29146774f9f2e19913f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When using the exception in paragraph [820-10-35-18D](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18D), a reporting entity shall ensure that the market risk (or risks) to which the reporting entity is exposed within that group of financial assets, financial liabilities, nonfinancial items accounted for as derivatives in accordance with Topic 815, or combinations of these items is substantially the same. For example, a reporting entity would not combine the interest rate risk associated with a financial asset with the commodity price risk associated with a financial liability, because doing so would not mitigate the reporting entity's exposure to interest rate risk or commodity price risk. When using the exception in paragraph [820-10-35-18D](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18D), any basis risk resulting from the market risk parameters not being identical shall be taken into account in the fair value measurement of the financial assets, financial liabilities, nonfinancial items accounted for as derivatives in accordance with Topic 815, or combinations of these items within the group. ##### [820-10-35-18K](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18K) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:e91501e7f7132b3f523aa0983005f90d49739b63b8946ad4f91e26d7b95915b5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Similarly, the duration of the reporting entity's exposure to a particular market risk (or risks) arising from the financial assets, financial liabilities, nonfinancial items accounted for as derivatives in accordance with Topic 815, or combinations of these items shall be substantially the same. For example, a reporting entity that uses a 12-month futures contract against the cash flows associated with 12 months' worth of interest rate risk exposure on a 5-year financial instrument within a group made up of only those financial assets, financial liabilities, nonfinancial items accounted for as derivatives in accordance with Topic 815, or combinations of these items measures the fair value of the exposure to 12-month interest rate risk on a net basis and the remaining interest rate risk exposure (that is, years 2 through 5) on a gross basis. ##### [820-10-35-18L](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18L) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:47d7764a7403ee7a1f6c82d8abfbd8bd77021caf6fc6c2685cee2f37a3810f6c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When using the exception in paragraph [820-10-35-18D](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-18D) to measure the fair value of a group of financial assets, financial liabilities, nonfinancial items accounted for as derivatives in accordance with Topic 815, or combinations of these items entered into with a particular counterparty, the reporting entity shall include the effect of the reporting entity's net exposure to the credit risk of that counterparty or the counterparty's net exposure to the credit risk of the reporting entity in the fair value measurement when market participants would take into account any existing arrangements that mitigate credit risk exposure in the event of default (for example, a master netting agreement with the counterparty or an agreement that requires the exchange of collateral on the basis of each party's net exposure to the credit risk of the other party). The fair value measurement shall reflect market participants' expectations about the likelihood that such an arrangement would be legally enforceable in the event of default. ##### [820-10-35-19](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-19) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:2063004cb7a8fa8889552918aeec2b1d16110f755d335bb679a4b2ea4218c72d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 820-10-35-19 through 35-23 superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-19). #### Valuation Techniques ##### [820-10-35-24](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-24) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:40ed846826b747bee64bee6f4385e72556518dc7ed2080bd16e592f1f8e2e608 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A reporting entity shall use valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. ##### [820-10-35-24A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-24A) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:e9e4a6a69e57b554c8ce17573d4f0cfb5e50c4918d18c1eee619a7be34acc95e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The objective of using a valuation technique is to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions. Three widely used valuation approaches are the [market approach](https://asc.understandingaccounting.org/glossary/m/#market-approach "A valuation approach that uses prices and other relevant information generated by market transactions involving identical or comparable (that is, similar) assets, liabilities, or a group of assets and liabilities, such as a business."), [cost approach](https://asc.understandingaccounting.org/glossary/c/#cost-approach "A valuation approach that reflects the amount that would be required currently to replace the service capacity of an asset (often referred to as current replacement cost)."), and [income approach](https://asc.understandingaccounting.org/glossary/i/#income-approach "Valuation approaches that convert future amounts (for example, cash flows or income and expenses) to a single current (that is, discounted) amount. The fair value measurement is determined on the basis of the value indicated by current market expectations about those future amounts."). The main aspects of valuation techniques consistent with those approaches are summarized in paragraphs [820-10-55-3A through 55-3G](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-3A) . An entity shall use valuation techniques consistent with one or more of those approaches to measure fair value. ##### [820-10-35-24B](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-24B) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:335b8b92d116fb14f219844196ad6526156ba5d95ca42230b7659676291a9ff5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In some cases, a single valuation technique will be appropriate (for example, when valuing an asset or a liability using quoted prices in an [active market](https://asc.understandingaccounting.org/glossary/a/#active-market "A market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.") for identical assets or liabilities). In other cases, multiple valuation techniques will be appropriate (for example, that might be the case when valuing a reporting unit). If multiple valuation techniques are used to measure fair value, the results (that is, respective indications of fair value) shall be evaluated considering the reasonableness of the range of values indicated by those results. A fair value measurement is the point within that range that is most representative of fair value in the circumstances. ##### [820-10-35-24C](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-24C) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:d08239ef1dc3075da23b529f37a77f657b04e5f219253299a79f2fdd3bfc7f15 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the transaction price is fair value at initial recognition and a valuation technique that uses unobservable inputs will be used to measure fair value in subsequent periods, the valuation technique shall be calibrated so that at initial recognition the result of the valuation technique equals the transaction price. Calibration ensures that the valuation technique reflects current market conditions, and it helps a reporting entity to determine whether an adjustment to the valuation technique is necessary (for example, there might be a characteristic of the asset or liability that is not captured by the valuation technique). After initial recognition, when measuring fair value using a valuation technique or techniques that use unobservable inputs, a reporting entity shall ensure that those valuation techniques reflect observable market data (for example, the price for a similar asset or liability) at the measurement date. ##### [820-10-35-25](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-25) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:3cbb7e2b983861e148052964daf2640868d73c832e28c829f4fa01a52a90cbf3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Valuation techniques used to measure fair value shall be applied consistently. However, a change in a valuation technique or its application (for example, a change in its weighting when multiple valuation techniques are used or a change in an adjustment applied to a valuation technique) is appropriate if the change results in a measurement that is equally or more representative of fair value in the circumstances. That might be the case if, for example, any of the following events take place: 1. a New markets develop. 2. b New information becomes available. 3. c Information previously used is no longer available. 4. d Valuation techniques improve. 5. e Market conditions change. ##### [820-10-35-26](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-26) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:379b854d6b87daef04ea1d0d48db803b68b29d6d49a9864fee435798bee28af8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Revisions resulting from a change in the valuation technique or its application shall be accounted for as a change in accounting estimate. (See paragraph [250-10-45-17](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-17). However, paragraph [250-10-50-5](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-5) explains that the disclosures in Topic 250 for a change in accounting estimate are not required for revisions resulting from a change in a valuation technique or its application.) ##### [820-10-35-27](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-27) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:e4aad87517ecec4ff9f4bda9910a5f8e9cc315a47b9bb653a0502dcdccb8dff9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Examples in Section 820-10-55 illustrate the judgments that might apply when a reporting entity measures assets and liabilities at fair value in different valuation situations. ##### [820-10-35-28](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-28) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:bc99fe80b13ddf2222b0d184da9a2c5e82f4b2aaea362f194debfa3b277bd3fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 820-10-35-28 through 35-35 superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-28). #### Inputs to Valuation Techniques ##### [820-10-35-36](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-36) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:b3d932921d1fb2778cefb2dd64cac2680f532ed3e34311df1f5dbcb1bb3c1646 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Valuation techniques used to measure fair value shall maximize the use of relevant observable inputs and minimize the use of unobservable inputs. ##### [820-10-35-36A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-36A) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:e908054557eb78f03f6a6a02fc9d1de966b0577f98375d575c251dea495c8109 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples of markets in which inputs might be observable for some assets and liabilities (for example, financial instruments) include [exchange markets](https://asc.understandingaccounting.org/glossary/e/#exchange-market "A market in which closing prices are both readily available and generally representative of fair value. An example of such a market is the New York Stock Exchange."), [dealer markets](https://asc.understandingaccounting.org/glossary/d/#dealer-market "A market in which dealers stand ready to trade (either buy or sell for their own account), thereby providing liquidity by using their capital to hold an inventory of the items for which they make a market. Typically, bid and ask prices (representing the price at which the dealer is willing to buy and the price at which the dealer is willing to sell, respectively) are more readily available than closing prices. Over-the-counter markets (for which prices are publicly reported by the National Association of Securities Dealers Automated Quotations systems or by OTC Markets Group Inc.) are dealer markets. For example, the market for U.S. Treasury securities is a dealer market. Dealer markets also exist for some other assets and liabilities, including other financial instruments, commodities, and physical assets (for example, used equipment)."), [brokered markets](https://asc.understandingaccounting.org/glossary/b/#brokered-market "A market in which brokers attempt to match buyers with sellers but do not stand ready to trade for their own account. In other words, brokers do not use their own capital to hold an inventory of the items for which they make a market. The broker knows the prices bid and asked by the respective parties, but each party is typically unaware of another party's price requirements. Prices of completed transactions are sometimes available. Brokered markets include electronic communication networks, in which buy and sell orders are matched, and commercial and residential real estate markets."), and [principal-to-principal markets](https://asc.understandingaccounting.org/glossary/p/#principal-to-principal-market "A market in which transactions, both originations and resales, are negotiated independently with no intermediary. Little information about those transactions may be made available publicly."). ##### [820-10-35-36B](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-36B) Pending content: yes Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:ae815626a10b199bc94f9af3048307891b89f8c0bce51f54baabcf74bdeaf9f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A reporting entity shall select inputs that are consistent with the characteristics of the asset or liability that market participants would take into account in a transaction for the asset or liability (see paragraphs [820-10-35-2B through 35-2C](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-2B) ). In some cases, those characteristics result in the application of an adjustment, such as a premium or discount (for example, a control premium or noncontrolling interest discount). However, a fair value measurement shall not incorporate a premium or discount that is inconsistent with the unit of account in the Topic that requires or permits the fair value measurement. Premiums or discounts that reflect size as a characteristic of the reporting entity's holding (specifically, a blockage factor that adjusts the quoted price of an asset or a liability because the market's normal daily trading volume is not sufficient to absorb the quantity held by the entity, as described in paragraph [820-10-35-44](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-44)) rather than as a characteristic of the asset or liability (for example, a control premium when measuring the fair value of a controlling interest) are not permitted in a fair value measurement. Similarly, a discount applied to the price of an equity security because of a contractual sale restriction is inconsistent with the unit of account being the equity security. A contractual sale restriction is a characteristic of the reporting entity holding the equity security rather than a characteristic of the asset and, therefore, is not considered in measuring the fair value of an equity security (see paragraphs [820-10-55-52 through 55-52A](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-52) ). A contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security and shall not be separately recognized as its own unit of account. In all cases, if there is a quoted price in an active market (that is, a Level 1 input) for an asset or a liability, a reporting entity shall use that quoted price without adjustment when measuring fair value, except as specified in paragraph [820-10-35-41C](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-41C). Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [820-10-65-14](https://asc.understandingaccounting.org/asc/820/10/#820-10-65-14)A reporting entity shall select inputs that are consistent with the characteristics of the asset or liability that market participants would take into account in a transaction for the asset or liability (see paragraphs [820-10-35-2B through 35-2C](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-2B) ). In some cases, those characteristics result in the application of an adjustment, such as a premium or discount (for example, a control premium or noncontrolling interest discount). However, a fair value measurement shall not incorporate a premium or discount that is inconsistent with the unit of account in the Topic that requires or permits the fair value measurement. Premiums or discounts that reflect size as a characteristic of the reporting entity's holding (specifically, a blockage factor that adjusts the quoted price of an asset or a liability because the market's normal daily trading volume is not sufficient to absorb the quantity held by the entity, as described in paragraph [820-10-35-44](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-44)) rather than as a characteristic of the asset or liability (for example, a control premium when measuring the fair value of a controlling interest) are not permitted in a fair value measurement. ##### [820-10-35-36BB](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-36BB) Pending content: yes Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:4bc59f20e1db9c23709eb7ed8a5564c21e7cea14b580ddeec2a5eb9d93a87085 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [820-10-65-14](https://asc.understandingaccounting.org/asc/820/10/#820-10-65-14)For entities other than investment companies within the scope of Topic 946, a discount applied to the price of an equity security because of a contractual sale restriction is inconsistent with the unit of account being the equity security. A contractual sale restriction is a characteristic of the reporting entity holding the equity security rather than a characteristic of the equity security and, therefore, is not considered in measuring the fair value of an equity security (see paragraphs [820-10-55-52 through 55-52A](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-52) ). A contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security and shall not be separately recognized as its own unit of account. If there is a quoted price in an active market (that is, a Level 1 input) for an asset or a liability, a reporting entity shall use that quoted price without adjustment when measuring fair value, except as specified in paragraph [820-10-35-41C](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-41C). ##### [820-10-35-36BBB](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-36BBB) Pending content: yes Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:b24fe979b6de92b6031889c23573b4f42124e90b2c0802d7464d404056de0678 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [820-10-65-14](https://asc.understandingaccounting.org/asc/820/10/#820-10-65-14)When an investment company within the scope of Topic 946 cannot sell an equity security on the measurement date because of a contractual sale restriction, the investment company shall incorporate the effect of the restriction in the fair value measurement of that security by applying a discount (see paragraph [820-10-55-52B](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-52B)). An investment company within the scope of Topic 946 shall incorporate the effect of the restriction regardless of whether the contractual sale restriction is a characteristic of the reporting entity holding the equity security or a characteristic of the equity security. The discount shall reflect the amount that market participants would demand because of the restriction. The requirements of this paragraph do not apply to restrictions imposed on equity securities that are reflected in the economics of another transaction entered into by the reporting entity (for example, a borrowing in which the reporting entity pledged those equity securities as collateral). ##### [820-10-35-36C](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-36C) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:5b0904bb501c8f838e2b937886b8c111663d144071e1e296c5b4cd7af7bdde3d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an asset or a liability measured at fair value has a bid price and an ask price (for example, an input from a dealer market), the price within the bid-ask spread that is most representative of fair value in the circumstances shall be used to measure fair value regardless of where the input is categorized within the fair value hierarchy (that is, Level 1, 2, or 3). The use of bid prices for asset positions and ask prices for liability positions is permitted but is not required. ##### [820-10-35-36D](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-36D) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:42b8fcfc81418d96abcd02591e8f2a8172dc86a1baded08ab5186bbcc4180812 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Topic does not preclude the use of mid-market pricing or other pricing conventions that are used by market participants as a practical expedient for fair value measurements within a bid-ask spread. For example, paragraphs [820-10-35-25 through 35-26](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-25) apply to a change from the use of mid-market pricing or other pricing conventions to another valuation technique. In addition, the disclosure requirements in paragraph [820-10-50-2(bbb)](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-2) apply to such changes. #### Fair Value Hierarchy ##### [820-10-35-37](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-37) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:074a00f31999c151200c41fec7480728ee1eeeb51f06b9dce15df6f4aeda185a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To increase consistency and comparability in fair value measurements and related disclosures, this Topic establishes a fair value hierarchy that categorizes into three levels (see paragraphs [820-10-35-40 through 35-41](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-40) , [820-10-35-41B through 35-41C](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-41B) , [820-10-35-44](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-44), [820-10-35-46 through 35-51](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-46) , and [820-10-35-52 through 35-54A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-52) ) the inputs to valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities ([Level 1 inputs](https://asc.understandingaccounting.org/glossary/l/#level-1-inputs "Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.")) and the lowest priority to unobservable inputs ([Level 3 inputs](https://asc.understandingaccounting.org/glossary/l/#level-3-inputs "Unobservable inputs for the asset or liability.")). ##### [820-10-35-37A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-37A) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:7dc21af0c0d3014abe1d6f90e371c566b51f3f6cce48c630af809d9d262e7e9e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In some cases, the inputs used to measure the fair value of an asset or a liability might be categorized within different levels of the fair value hierarchy. In those cases, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. Assessing the significance of a particular input to the entire measurement requires judgment, taking into account factors specific to the asset or liability. Adjustments to arrive at measurements based on fair value, such as costs to sell when measuring fair value less costs to sell, shall not be taken into account when determining the level of the fair value hierarchy within which a fair value measurement is categorized. ##### [820-10-35-38](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-38) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:451a417a11181b6d217236fbf7929d6de622cd933398deb21b7d24c0e49ebaef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The availability of relevant inputs and their relative subjectivity might affect the selection of appropriate valuation techniques (see paragraph [820-10-35-24)](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-24). However, the fair value hierarchy prioritizes the inputs to valuation techniques, not the valuation techniques used to measure fair value. For example, a fair value measurement developed using a present value technique might be categorized within Level 2 or Level 3, depending on the inputs that are significant to the entire measurement and the level of the fair value hierarchy within which those inputs are categorized. ##### [820-10-35-38A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-38A) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:cc199506dd3b051fc6f1dd77216995a3a9bdc838becfb47c06a9093a17281c45 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an observable input requires an adjustment using an unobservable input and that adjustment results in a significantly higher or lower fair value measurement, the resulting measurement would be categorized within Level 3 of the fair value hierarchy. For example, if a market participant would take into account the effect of a restriction on the sale of an asset when estimating the price for the asset, a reporting entity would adjust the quoted price to reflect the effect of that restriction. If that quoted price is a Level 2 input and the adjustment is an unobservable input that is significant to the entire measurement, the measurement would be categorized within Level 3 of the fair value hierarchy. ##### [820-10-35-39](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-39) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:4646d76d6e469e2a383f2f314be189962bcc35a55183c8365fd7ccd639dfbf4b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). ##### [820-10-35-40](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-40) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:ba13d983b0c370dc4f0d7c5926517c79c3ff82e05c2072efaedbb8e6e462fe5e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. ##### [820-10-35-41](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-41) Pending content: yes Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:1ce98fc1d909699aeca8444e143a6d0822076cc6955f9eba6111a200619ef622 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A quoted price in an active market provides the most reliable evidence of fair value and shall be used without adjustment to measure fair value whenever available, except as specified in paragraph [820-10-35-41C](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-41C). Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [820-10-65-14](https://asc.understandingaccounting.org/asc/820/10/#820-10-65-14)A quoted price in an active market provides the most reliable evidence of fair value and shall be used without adjustment to measure fair value whenever available, except as specified in paragraphs [820-10-35-36BBB](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-36BBB) and [820-10-35-41C](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-41C). ##### [820-10-35-41A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-41A) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:b0f61c41790dbc8f03db8c66258f814234966532e99331d53ceeca5f52876649 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). ##### [820-10-35-41B](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-41B) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:3186db1c7508f2e8b2bc413d8406f19da79697249491ff2f100d0565ef86152a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A Level 1 input will be available for many financial assets and financial liabilities, some of which might be exchanged in multiple active markets (for example, on different exchanges). Therefore, the emphasis within Level 1 is on determining both of the following: 1. a The principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability 2. b Whether the reporting entity can enter into a transaction for the asset or liability at the price in that market for the asset or liability at the measurement date. ##### [820-10-35-41C](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-41C) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:62fc80ad6802793de7da285efe5391125eec37721447aa85e1c389be3cdbd6b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A reporting entity shall not make an adjustment to a Level 1 input except in the following circumstances: 1. a When a reporting entity holds a large number of similar (but not identical) assets or liabilities (for example, debt securities) that are measured at fair value and a quoted price in an active market is available but not readily accessible for each of those assets or liabilities individually (that is, given the large number of similar assets or liabilities held by the reporting entity, it would be difficult to obtain pricing information for each individual asset or liability at the measurement date). In that case, as a practical expedient, a reporting entity may measure fair value using an alternative pricing method that does not rely exclusively on quoted prices (for example, matrix pricing). However, the use of an alternative pricing method results in a fair value measurement categorized within a lower level of the fair value hierarchy. 2. b When a quoted price in an active market does not represent fair value at the measurement date. That might be the case if, for example, significant events (such as transactions in a principal-to-principal market, trades in a brokered market, or announcements) take place after the close of a market but before the measurement date. A reporting entity shall establish and consistently apply a policy for identifying those events that might affect fair value measurements. However, if the quoted price is adjusted for new information, the adjustment results in a fair value measurement categorized within a lower level of the fair value hierarchy. 3. c When measuring the fair value of a liability or an instrument classified in a reporting entity's shareholders' equity using the quoted price for the identical item traded as an asset in an active market and that price needs to be adjusted for factors specific to the item or the asset (see paragraph [820-10-35-16D](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-16D)). If no adjustment to the quoted price of the asset is required, the result is a fair value measurement categorized within Level 1 of the fair value hierarchy. However, any adjustment to the quoted price of the asset results in a fair value measurement categorized within a lower level of the fair value hierarchy. ##### [820-10-35-42](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-42) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:cf40367fe75ab995bc0e8069873728c9c6dc184a994cfa096348eece387760ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). ##### [820-10-35-43](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-43) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:f482fea34d1876352ef4de2f0a7c7e98fb846a2cf35ea7b71d9841393ee214ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). ##### [820-10-35-44](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-44) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:6da34f7d7224193a2385d8e616c696d94751b53175b7ec33db08ffde9e43693f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a reporting entity holds a position in a single asset or liability (including a position comprising a large number of identical assets or liabilities, such as a holding of financial instruments) and the asset or liability is traded in an active market, the fair value of the asset or liability shall be measured within Level 1 as the product of the quoted price for the individual asset or liability and the quantity held by the reporting entity. That is the case, even if a market's normal daily trading volume is not sufficient to absorb the quantity held and placing orders to sell the position in a single transaction might affect the quoted price. ##### [820-10-35-45](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-45) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:88ecd4e0604f1f454cfb78b23f3b080b3fdf46a14a921bcaabc5ea47a0e70ca0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). ##### [820-10-35-46](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-46) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:7bc9689f3acdaea9a7560dd8b162d240a9bd86d35521f81ec9a29b64d496b212 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [820-10-55-42](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-42) illustrates the use of Level 1 inputs to measure the fair value of a financial asset that trades in multiple active markets with different prices. ##### [820-10-35-47](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-47) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:c7142df794e00a94a1da7630873ce62625cda18fe77f7c816f6b063c8c889061 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Level 2 inputs](https://asc.understandingaccounting.org/glossary/l/#level-2-inputs "Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.") are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. ##### [820-10-35-48](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-48) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:385f3052afd92b7070a439eb9d5920598cf1c18fe95732a5de18e10d4da08ecd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 2 inputs include the following: 1. a Quoted prices for similar assets or liabilities in active markets 2. b Quoted prices for identical or similar assets or liabilities in markets that are not active 3. c Inputs other than quoted prices that are observable for the asset or liability, for example: 1. 1 Interest rates and yield curves observable at commonly quoted intervals 2. 2 Implied volatilities 3. 3 [Subparagraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). 4. 4 [Subparagraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). 5. 5 Credit spreads. 6. 6 [Subparagraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). 4. d [Market-corroborated inputs](https://asc.understandingaccounting.org/glossary/m/#market-corroborated-inputs "Inputs that are derived principally from or corroborated by observable market data by correlation or other means."). ##### [820-10-35-49](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-49) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:742bea1d68a691b75bbfa312a5065fffc4e0e3d4668e1021b961754e59600c97 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [820-10-55-21](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-21) discusses Level 2 inputs for particular assets and liabilities. ##### [820-10-35-50](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-50) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:489c8e929928a9a46b3be85d3cf3c28590c6be6aa39d3aa4a167d6618fba07e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Adjustments to Level 2 inputs will vary depending on factors specific to the asset or liability. Those factors include the following: 1. a The condition or location of the asset 2. b The extent to which inputs relate to items that are comparable to the asset or liability (including those factors described in paragraph [820-10-35-16D](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-16D)) 3. c The volume or level of activity in the markets within which the inputs are observed. ##### [820-10-35-51](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-51) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:e4a514d1061fb5c3af793e03c2427e8fb6bae776b3b6b194e7e32aa258a68787 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An adjustment to a Level 2 input that is significant to the entire measurement might result in a fair value measurement categorized within Level 3 of the fair value hierarchy if the adjustment uses significant unobservable inputs. ##### [820-10-35-51A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-51A) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:4fea8566d221ba40e44db5fddfcb64641080e2f3ceecfa2b1b22a17251f30a7a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 820-10-35-51A through 35-51H superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-51A). ##### [820-10-35-52](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-52) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:5872fd29a17e7a0ae9d890d240761bc63f3a0a9508c5bdf59dde72208b3b8af0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Level 3 inputs are unobservable inputs for the asset or liability. ##### [820-10-35-53](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-53) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:7ee08c525a77381f7d30f434dcc1ca3196a58d9d552905ae19060117944cfd54 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Unobservable inputs shall be used to measure fair value to the extent that relevant observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. However, the fair value measurement objective remains the same, that is, an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability. Therefore, unobservable inputs shall reflect the assumptions that market participants would use when pricing the asset or liability, including assumptions about risk. ##### [820-10-35-54](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-54) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:7f67e24bbedea92ecc4cc83d475b52508445785333ff34dc7e7a8c91de6a90f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assumptions about risk include the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and the risk inherent in the inputs to the valuation technique. A measurement that does not include an adjustment for risk would not represent a fair value measurement if market participants would include one when pricing the asset or liability. For example, it might be necessary to include a risk adjustment when there is significant measurement uncertainty (for example, when there has been a significant decrease in the volume or level of activity when compared with normal market activity for the asset or liability, or similar assets or liabilities, and the reporting entity has determined that the transaction price or quoted price does not represent fair value, as described in paragraphs [820-10-35-54C through 35-54J](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-54C) ). ##### [820-10-35-54A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-54A) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:8baa764f5e747a7aaa1302e66a9d31c468c68ebc731b2bca1c778cab61edfb0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A reporting entity shall develop unobservable inputs using the best information available in the circumstances, which might include the reporting entity's own data. In developing unobservable inputs, a reporting entity may begin with its own data, but it shall adjust those data if reasonably available information indicates that other market participants would use different data or there is something particular to the reporting entity that is not available to other market participants (for example, an entity-specific synergy). A reporting entity need not undertake exhaustive efforts to obtain information about market participant assumptions. However, a reporting entity shall take into account all information about market participant assumptions that is reasonably available. Unobservable inputs developed in the manner described above are considered market participant assumptions and meet the objective of a fair value measurement. #### Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) ##### [820-10-35-54B](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-54B) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:86020771ce7d94e2ed01692d2fb80c302dbede25b759955c1cb09f68779959f9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investment within the scope of paragraphs [820-10-15-4 through 15-5](https://asc.understandingaccounting.org/asc/820/10/#820-10-15-4) for which fair value is measured using [net asset value per share](https://asc.understandingaccounting.org/glossary/n/#net-asset-value-per-share "Net asset value per share is the amount of net assets attributable to each share of capital stock (other than senior equity securities, that is, preferred stock) outstanding at the close of the period. It excludes the effects of assuming conversion of outstanding convertible securities, whether or not their conversion would have a diluting effect.") (or its equivalent, for example member units or an ownership interest in partners' capital to which a proportionate share of net assets is attributed) as a practical expedient, as described in paragraph [820-10-35-59](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-59), shall not be categorized within the fair value hierarchy. In addition, the disclosure requirements in paragraph [820-10-50-2](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-2) do not apply to that investment. Disclosures required for an investment for which fair value is measured using net asset value per share (or its equivalent) as a practical expedient are described in paragraph [820-10-50-6A](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-6A). Although the investment is not categorized within the fair value hierarchy, a reporting entity shall provide the amount measured using the net asset value per share (or its equivalent) practical expedient to permit reconciliation of the fair value of investments included in the fair value hierarchy to the line items presented in the statement of financial position in accordance with paragraph [820-10-50-2B](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-2B). 1. a [Subparagraph superseded by Accounting Standards Update No. 2015-07](https://asc.understandingaccounting.org/updates/asu-2015-07/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2015-07](https://asc.understandingaccounting.org/updates/asu-2015-07/). 3. c [Subparagraph superseded by Accounting Standards Update No. 2015-07](https://asc.understandingaccounting.org/updates/asu-2015-07/). #### Measuring Fair Value When the Volume or Level of Activity for an Asset or a Liability Has Significantly Decreased ##### [820-10-35-54C](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-54C) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:2f5bc29aec3ea840b8903d46ee7e368ccd3a4433fb37fb09696c28578e951b7c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The fair value of an asset or a liability might be affected when there has been a significant decrease in the volume or level of activity for that asset or liability in relation to normal market activity for the asset or liability (or similar assets or liabilities). To determine whether, on the basis of the evidence available, there has been a significant decrease in the volume or level of activity for the asset or liability, a reporting entity shall evaluate the significance and relevance of factors such as the following: 1. a There are few recent transactions. 2. b Price quotations are not developed using current information. 3. c Price quotations vary substantially either over time or among market makers (for example, some brokered markets). 4. d Indices that previously were highly correlated with the fair values of the asset or liability are demonstrably uncorrelated with recent indications of fair value for that asset or liability. 5. e There is a significant increase in implied liquidity risk premiums, yields, or performance indicators (such as delinquency rates or loss severities) for observed transactions or quoted prices when compared with the reporting entity's estimate of expected cash flows, taking into account all available market data about credit and other nonperformance risk for the asset or liability. 6. f There is a wide bid-ask spread or significant increase in the bid-ask spread. 7. g There is a significant decline in the activity of, or there is an absence of, a market for new issues (that is, a primary market) for the asset or liability or similar assets or liabilities. 8. h Little information is publicly available (for example, for transactions that take place in a principal-to-principal market). ##### [820-10-35-54D](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-54D) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:8cdfe2322c5d46f4a514271f39595113c8a496ffdb888f791bebc59f5b5a2b13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a reporting entity concludes that there has been a significant decrease in the volume or level of activity for the asset or liability in relation to normal market activity for the asset or liability (or similar assets or liabilities), further analysis of the transactions or quoted prices is needed. A decrease in the volume or level of activity on its own may not indicate that a transaction price or quoted price does not represent fair value or that a transaction in that market is not orderly. However, if a reporting entity determines that a transaction or quoted price does not represent fair value (for example, there may be transactions that are not orderly), an adjustment to the transactions or quoted prices will be necessary if the reporting entity uses those prices as a basis for measuring fair value and that adjustment may be significant to the fair value measurement in its entirety. Adjustments also may be necessary in other circumstances (for example, when a price for a similar asset requires significant adjustment to make it comparable to the asset being measured or when the price is stale). ##### [820-10-35-54E](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-54E) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:9bd334cbe2bf358357cb3749ae8172555cb5e54bafbf4a847e44b164b96414cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Topic does not prescribe a methodology for making significant adjustments to transactions or quoted prices. See paragraphs [820-10-35-24 through 35-27](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-24) and [820-10-55-3A through 55-3G](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-3A) for a discussion of the use of valuation techniques when measuring fair value. Regardless of the valuation technique used, a reporting entity shall include appropriate risk adjustments, including a [risk premium](https://asc.understandingaccounting.org/glossary/r/#risk-premium "Compensation sought by risk-averse market participants for bearing the uncertainty inherent in the cash flows of an asset or a liability. Also referred to as a risk adjustment.") reflecting the amount that market participants would demand as compensation for the uncertainty inherent in the cash flows of an asset or a liability (see paragraph [820-10-55-8](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-8)). Otherwise, the measurement does not faithfully represent fair value. In some cases, determining the appropriate risk adjustment might be difficult. However, the degree of difficulty alone is not a sufficient basis on which to exclude a risk adjustment. The risk adjustment shall be reflective of an orderly transaction between market participants at the measurement date under current market conditions. ##### [820-10-35-54F](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-54F) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:c9c9489741888bbb26e6bd3b04ca0fbb4de3e7ebe4daca64348535c325051e00 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If there has been a significant decrease in the volume or level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate (for example, the use of a market approach and a present value technique). When weighting indications of fair value resulting from the use of multiple valuation techniques, a reporting entity shall consider the reasonableness of the range of fair value measurements. The objective is to determine the point within the range that is most representative of fair value under current market conditions. A wide range of fair value measurements may be an indication that further analysis is needed. ##### [820-10-35-54G](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-54G) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:891302aa20e528b1b59821442cc4e9cdef2aa475dc759907d25ce77cb587513a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Even when there has been a significant decrease in the volume or level of activity for the asset or liability, the objective of a fair value measurement remains the same. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (that is, not a forced liquidation or distress sale) between market participants at the measurement date under current market conditions. ##### [820-10-35-54H](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-54H) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:61401e57483f07609ee335fc00b42519f82d67c8d2e74f1d54d0c7de97ac7350 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Estimating the price at which market participants would be willing to enter into a transaction at the measurement date under current market conditions if there has been a significant decrease in the volume or level of activity for the asset or liability depends on the facts and circumstances at the measurement date and requires judgment. A reporting entity's intention to hold the asset or to settle or otherwise fulfill the liability is not relevant when measuring fair value because fair value is a market-based measurement, not an entity-specific measurement. #### Identifying Transactions That Are Not Orderly ##### [820-10-35-54I](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-54I) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:16f832a3ba5ccb37821461230001255cb1d304696b3de94047f25586936636f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The determination of whether a transaction is orderly (or is not orderly) is more difficult if there has been a significant decrease in the volume or level of activity for the asset or liability in relation to normal market activity for the asset or liability (or similar assets or liabilities). In such circumstances, it is not appropriate to conclude that all transactions in that market are not orderly (that is, forced liquidations or distress sales). Circumstances that may indicate that a transaction is not orderly include the following: 1. a There was not adequate exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities under current market conditions. 2. b There was a usual and customary marketing period, but the seller marketed the asset or liability to a single market participant. 3. c The seller is in or near bankruptcy or receivership (that is, the seller is distressed). 4. d The seller was required to sell to meet regulatory or legal requirements (that is, the seller was forced). 5. e The transaction price is an outlier when compared with other recent transactions for the same or a similar asset or liability. A reporting entity shall evaluate the circumstances to determine whether, on the weight of the evidence available, the transaction is orderly. ##### [820-10-35-54J](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-54J) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:21a5bb76da894fdde6b00575b01b8d878f083211179a35d313a1693c70071b25 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A reporting entity shall consider all of the following when measuring fair value or estimating market risk premiums: 1. a If the evidence indicates the transaction is not orderly, a reporting entity shall place little, if any, weight (compared with other indications of fair value) on that transaction price. 2. b If the evidence indicates that a transaction is orderly, a reporting entity shall take into account that transaction price. The amount of weight placed on that transaction price when compared with other indications of fair value will depend on the facts and circumstances, such as the following: 1. 1 The volume of the transaction 2. 2 The comparability of the transaction to the asset or liability being measured 3. 3 The proximity of the transaction to the measurement date. 3. c If a reporting entity does not have sufficient information to conclude whether a transaction is orderly, it shall take into account the transaction price. However, that transaction price may not represent fair value (that is, the transaction price is not necessarily the sole or primary basis for measuring fair value or estimating market risk premiums). When a reporting entity does not have sufficient information to conclude whether particular transactions are orderly, the reporting entity shall place less weight on those transactions when compared with other transactions that are known to be orderly. A reporting entity need not undertake exhaustive efforts to determine whether a transaction is orderly, but it shall not ignore information that is reasonably available. When a reporting entity is a party to a transaction, it is presumed to have sufficient information to conclude whether the transaction is orderly. #### Using Quoted Prices Provided by Third Parties ##### [820-10-35-54K](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-54K) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:b226e2b0df1c701ad9ccbca92b57ef43f866c86adc22685ec8a277b746eb2380 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Topic does not preclude the use of quoted prices provided by third parties, such as pricing services or brokers, if a reporting entity has determined that the quoted prices provided by those parties are developed in accordance with this Topic. ##### [820-10-35-54L](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-54L) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:70db719923a56932d7ed0fb166cc3659fe8533ff2b7443a5c65c37bac4226787 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If there has been a significant decrease in the volume or level of activity for the asset or liability, a reporting entity shall evaluate whether the quoted prices provided by third parties are developed using current information that reflects orderly transactions or a valuation technique that reflects market participant assumptions (including assumptions about risk). In weighting a quoted price as an input to a fair value measurement, a reporting entity places less weight (when compared with other indications of fair value that reflect the results of transactions) on quotes that do not reflect the result of transactions. ##### [820-10-35-54M](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-54M) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:7bf36bf28e1bb01321a44efbb2e19649acf4bac03da064c7edc07982e42e7403 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Furthermore, the nature of a quote (for example, whether the quote is an indicative price or a binding offer) shall be taken into account when weighting the available evidence, with more weight given to quotes provided by third parties that represent binding offers. ##### [820-10-35-55](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-55) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:b98e6a5415e2a396d1ad572fcba40cf416b16a88cdf6d8d428c5a6c20043e4ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/updates/asu-2011-04/). ##### [820-10-35-55A](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-55A) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:7f6b3d04c44119185bd082135e0369536f3931b5890b47c7ff2dda64929196a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [820-10-35-55B](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-55B) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:3587dfe5da4c1a6d891c66d4d450247dc65b396a20964d75c7b9d34619ba5e9b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [820-10-35-56](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-56) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:5e9fb7a5ec817a0847edbcb0d10b337862dfaf072079743f5e79f4b7b7c77689 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 820-10-35-56 through 35-58 superseded by Accounting Standards Update No. 2011-04](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-56). #### Measuring the Fair Value of Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) ##### [820-10-35-59](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-59) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:3b83d83b0449902b66a24c490f5c3b3853b1a72456202a4066e5b5d371fa586a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A reporting entity is permitted, as a practical expedient, to estimate the fair value of an investment within the scope of paragraphs [820-10-15-4 through 15-5](https://asc.understandingaccounting.org/asc/820/10/#820-10-15-4) using the net asset value per share (or its equivalent, such as member units or an ownership interest in partners' capital to which a proportionate share of net assets is attributed) of the investment, if the net asset value per share of the investment (or its equivalent) is calculated in a manner consistent with the measurement principles of Topic 946 as of the reporting entity's measurement date. ##### [820-10-35-60](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-60) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:b6b5c94174bc7381debbe63ff19947b6d1c220e839908d8dba342ca0916f6721 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the net asset value per share of the investment obtained from the investee is not as of the reporting entity's measurement date or is not calculated in a manner consistent with the measurement principles of Topic 946, the reporting entity shall consider whether an adjustment to the most recent net asset value per share is necessary. The objective of any adjustment is to estimate a net asset value per share for the investment that is calculated in a manner consistent with the measurement principles of Topic 946 as of the reporting entity's measurement date. ##### [820-10-35-61](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-61) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:0d717f9255710d31696108d4744a00f34ef4a55199d22323841671e72aa63000 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A reporting entity shall decide on an investment-by-investment basis whether to apply the practical expedient in paragraph [820-10-35-59](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-59) and shall apply that practical expedient consistently to the fair value measurement of the reporting entity's entire position in a particular investment, unless it is probable at the measurement date that the reporting entity will sell a portion of an investment at an amount different from net asset value per share (or its equivalent) as described in the following paragraph. In those situations, the reporting entity shall account for the portion of the investment that is being sold in accordance with this Topic (that is, the reporting entity shall not apply the guidance in paragraph [820-10-35-59](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-59)). ##### [820-10-35-62](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-62) Pending content: no Source downloaded (UTC): 2026-09-10T01:43:29.054Z to 2026-09-10T01:43:29.054Z Record version: sha256:afb82df3b604f9c9cb84f44c47268d5eaf156f2eca739a1c950b577a0bc6acfc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A reporting entity is not permitted to estimate the fair value of an investment (or a portion of the investment) within the scope of paragraphs [820-10-15-4 through 15-5](https://asc.understandingaccounting.org/asc/820/10/#820-10-15-4) using the net asset value per share of the investment (or its equivalent) as a practical expedient if, as of the reporting entity's measurement date, it is probable that the reporting entity will sell the investment for an amount different from the net asset value per share (or its equivalent). A sale is considered probable only if all of the following criteria have been met as of the reporting entity's measurement date: 1. a Management, having the authority to approve the action, commits to a plan to sell the investment. 2. b An active program to locate a buyer and other actions required to complete the plan to sell the investment have been initiated. 3. c The investment is available for immediate sale subject only to terms that are usual and customary for sales of such investments (for example, a requirement to obtain approval of the sale from the investee or a buyer's due diligence procedures). 4. d Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.