What it is
Fair value disclosures depend on whether the entity is a public business entity. Nonpublic entities do not give the Level 3 rollforward after ASU 2018-13 but still disclose transfers into and out of Level 3 and purchases and issues of Level 3 items, as well as the level for each class.
This checklist covers the hierarchy, techniques and inputs, Level 3 items, NAV investments, and ASU 2022-03 for equity securities with contractual sale restrictions.
When to use it
- When the entity holds investments, derivatives or contingent consideration at fair value.
- For impairment measurements using fair value.
- When ASU 2022-03 applies for the first time.
What’s inside
- General hierarchy and classes
- Valuation techniques and inputs
- Level 3 items and nonpublic relief
- Specific instruments: NAV, derivatives, restricted securities
- Other fair value related items
Standard cited
This template follows ASC 820. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
What does a nonpublic entity disclose for Level 3?
Not the full rollforward. After ASU 2018-13 it discloses purchases and issues of Level 3 assets and liabilities, and transfers into and out of Level 3 with the reasons (ASC 820-10-50-2G).
Do nonpublic entities disclose the fair value of debt?
No. After ASU 2016-01, entities that are not public business entities are not required to disclose the fair value of financial instruments measured at amortized cost, such as notes receivable and debt.
Is this checklist complete?
No. It is a prompt list paraphrased from the standard, not a substitute for the Codification or a full commercial disclosure checklist. Check each item against the current ASC text and any ASUs issued since the date you last checked, and add industry-specific requirements.
Related templates
- GAAP Disclosure Checklist (Private Company, Short Form)
- Disclosure Checklist: Debt (ASC 470)
- Disclosure Checklist: Not-for-Profit Entities (ASC 958)
Last updated 11/05/2026. All free templates.