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FASB proposal for investment company fair value reporting

Defining issues | July 2026

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

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

Applicability

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

Relevant dates

  • Proposed ASU issued July 1, 2026
  • Comments due on July 17, 2026

Key impacts

An investment company would be 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 restrictions.  

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