Which of the following is not an important aspect of SFAS No. 157 (FASB ASC 820)?
A) A new definition of fair value.
B) A requirement that all assets and liabilities are to be measured at their fair value.
C) A fair value hierarchy used to classify the source of information used in fair value measurements (for example, market based or nonmarket based).
D) New disclosures of assets and liabilities measured at fair value based on their level in the hierarchy.

Question

Which of the following is not an important aspect of SFAS No. 157 (FASB ASC 820)? 
A) A new definition of fair value.
B) A requirement that all assets and liabilities are to be measured at their fair value.
C) A fair value hierarchy used to classify the source of information used in fair value measurements (for example, market based or nonmarket based).
D) New disclosures of assets and liabilities measured at fair value based on their level in the hierarchy.

Quizplus · Accepted Answer

While SFAS No. 157 does require the use of fair value measurements, it does not require that all assets and liabilities be measured at fair value. Certain items are exempt from fair value measurements, such as those related to leases or employee benefits.

Which of the Following Is Not an Important Aspect of SFAS