FASB probes fair value of restricted equity securities

BVWireIssue #218-2
November 11, 2020

fair value for financial reporting
fair value, fair value measurements, accounting, financial accounting standards board (FASB)

The FASB has a project in initial deliberations, titled Effect of Underwriter Restrictions on Fair Value Measurements. The objective of this project is “to reduce diversity in practice on measuring the fair value of equity securities that are subject to an underwriter lockup restriction.” The FASB also decided to add a project to its research agenda to evaluate the effects of other types of sale restrictions on fair value measurements.
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