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What are the fair value standards?

The fair value standards are a set of guidelines that provide an overall framework for measuring fair value. This chapter describes the five steps of the framework.

What is ASC 820?

ASC 820 defines how fair value should be determined for financial reporting purposes. It establishes a fair value framework applicable to all fair value measurements under US GAAP (except those measurements specifically exempted; see further discussion in FV 2).

Does ASC 820 define fair value?

ASC 820 defines fair value, sets out a framework for measuring it, and establishes fair value disclosure requirements. However, ASC 820 does not specify when an entity is required or permitted to measure assets, liabilities, equity instruments, or transactions at fair value; this requirement is addressed in other US GAAP.

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