# ASC 820-940-30: Fair Value Measurement — Financial Services—Brokers and Dealers — 30 Initial Measurement

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/820/940/#30-initial-measurement)

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## ASC 820-940-30: 30 Initial Measurement

[Read section](https://asc.understandingaccounting.org/asc/820/940/#30-initial-measurement)

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##### [820-940-30-1](https://asc.understandingaccounting.org/asc/820/940/#820-940-30-1)

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This Section does not purport to delineate all factors that may be considered by management in determining the [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.") 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](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))
    
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:

[820-10-65-14](https://asc.understandingaccounting.org/asc/820/10/#820-10-65-14)This Section does not purport to delineate all factors that may be considered by management in determining the [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.") 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](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))
    
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.