{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/820/940/#30-initial-measurement","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"820","topic_title":"Fair Value Measurement","subtopic":"820-940","subtopic_title":"Financial Services—Brokers and Dealers","section":{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"820-940-30-1","para":"30-1","html":"
This Section does not purport to delineate all factors that may be considered by management in determining the fair value assigned to a particular financial instrument. However, the following is a list of certain factors that have been taken into consideration by broker-dealers as part of the determination of fair value:
  1. a
    Financial standing of the issuer
  2. b
    Business and financial plan of the issuer
  3. c
    Cost at date of purchase
  4. d
    The liquidity of the market
  5. e
    Restrictions on salability (see paragraphs 820-10-35-6B and 820-10-35-36B)
  6. f
    Pending public offering with respect to the financial instrument
  7. g
    Pending reorganization activity affecting the financial instrument (such as merger proposals, tender offers, debt restructurings, and conversions)
  8. h
    Reported prices and the extent of public trading in similar financial instruments of the issuer or comparable entities
  9. i
    Ability of the issuer to obtain needed financing
  10. j
    Changes in the economic conditions affecting the issuer
  11. k
    A recent purchase or sale of a security of the entity
  12. l
    Pricing by other dealers in similar securities.
Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance:
820-10-65-14This Section does not purport to delineate all factors that may be considered by management in determining the fair value assigned to a particular financial instrument. However, the following is a list of certain factors that have been taken into consideration by broker-dealers as part of the determination of fair value:
  1. a
    Financial standing of the issuer
  2. b
    Business and financial plan of the issuer
  3. c
    Cost at date of purchase
  4. d
    The liquidity of the market
  5. e
    Restrictions on salability (see paragraphs 820-10-35-6B and 820-10-35-36BB)
  6. f
    Pending public offering with respect to the financial instrument
  7. g
    Pending reorganization activity affecting the financial instrument (such as merger proposals, tender offers, debt restructurings, and conversions)
  8. h
    Reported prices and the extent of public trading in similar financial instruments of the issuer or comparable entities
  9. i
    Ability of the issuer to obtain needed financing
  10. j
    Changes in the economic conditions affecting the issuer
  11. k
    A recent purchase or sale of a security of the entity
  12. l
    Pricing by other dealers in similar securities.
","snippet":"This Section does not purport to delineate all factors that may be considered by management in determining the fair value assigned to a particular financial instrument. However, the following is a list of certain factors…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c4f30d9dec48b5b4dd25f3892e5ae27e44675562b1276eb9a21988ede7038636","downloaded_from":"2026-09-10T01:44:03.324Z","last_downloaded_at":"2026-09-10T01:44:03.324Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477863","source_sha256":"efdba19240fa0af6776d02c531ae31d264305ee4068a75dfe9bcf0d138899386"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:64bce6e537feb23a118bb12f1aa0d825ef1979c8f814b9e33a80100ba74ae694","downloaded_from":"2026-09-10T01:44:03.324Z","last_downloaded_at":"2026-09-10T01:44:03.324Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477863","source_sha256":"efdba19240fa0af6776d02c531ae31d264305ee4068a75dfe9bcf0d138899386"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b734bdf59185efcb5146f8584dcee8d24fc880decf9605be6194338c5c93a77a","downloaded_from":"2026-09-10T01:44:03.324Z","last_downloaded_at":"2026-09-10T01:44:03.324Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477863","source_sha256":"efdba19240fa0af6776d02c531ae31d264305ee4068a75dfe9bcf0d138899386"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b734bdf59185efcb5146f8584dcee8d24fc880decf9605be6194338c5c93a77a","downloaded_from":"2026-09-10T01:44:03.324Z","last_downloaded_at":"2026-09-10T01:44:03.324Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477863","source_sha256":"efdba19240fa0af6776d02c531ae31d264305ee4068a75dfe9bcf0d138899386"}}