Discussing fair value in the MD&A

Assist preparers in improving the MD&A discussion around fair value measurements and disclosures.

Get your downloadable electronic copy.

Download Now

Preparers want to know how to discuss fair value in the MD&A. Fair Value Discussions in the MD&A will help you enhance your discussion of fair value in the MD&A.

You will learn about:

  • when to distinguish between historical cost and fair value measures in the profit analysis
  • a larger class of valuation factors to consider when explaining performance
  • analyzing realized and unrealized amounts, separately from changes in valuation parameters
  • considering how fair value balances have changed for reasons other than market forces
  • when it may be appropriate to identify realized yield, as well as fair value yield, on assets and liabilities
  • when it may be appropriate to provide an integrated analysis of all related fair value measurements and disclosures

In addition:

Enhance discussions of fair value disclosures through various means, including:

  • explaining that fair value is a buyer’s price and discussing its decision relevance to the entity
  • identifying participants in relevant markets used to determine fair value
  • being precise in quantitative disclosures
  • identifying factors that have caused changes in fair values in user-friendly terms
  • identifying the holdings of various levels of assets and liabilities by business units
  • relating Level 3 income or loss to the entity as a whole


Update your knowledge and strengthen your network at this must-attend conference covering the most important issues and trends affecting audit committee members.

It’s probable that someone you know is deep in debt. If you are observant, you might see one of these seven signs.