Portfolio Valuation - ASC 820

Financial Accounting Standards Board Accounting Standards Codification Topic 820 (ASC 820) provides a fair value framework for valuing investments in plan financial statements, discusses acceptable valuation techniques, discusses inputs to valuation techniques, establishes a fair value hierarchy that prioritizes the inputs, and requires extensive financial statement disclosures about the valuation of plan investments.

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ASC 820 sets a standard for valuations that improves fair value reporting and disclosure requirements. In the past, preparing these valuations required a significant amount of time and resources; the new standard helps to limit unnecessary work and is designed to make the process of complying with disclosure requirements more efficient.