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FASB ASU for investment company fair value reporting

Defining issues | September 2026

The ASU amends the fair value measurement guidance for investment companies.

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ASU 2026-03 provides an exception to the fair value measurement guidance in ASC 820 for investment companies that have investments in equity securities.

Applicability

  • Investment companies that have investments in equity securities with contractual sale restrictions

Relevant dates

Effective dateAll investment companies
Annual periods – Fiscal years beginning afterDec 15, 2027
Interim periods – In fiscal years beginning afterDec 15, 2027
Early adoption allowed on any date after the following Sep 9, 2026

Key impacts

An investment company is required to (1) consider contractual sale restrictions on an equity security when measuring its fair value and (2) disclose the discount attributable to the contractual sale restriction.

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