The Financial Accounting Standards Board has issued a set of proposed changes to fair value measurement rules that would require companies to provide more information about illiquid assets.rnThe disclosures in FASB's exposure draft would provide more information about fair value measurements that use "significant unobservable inputs," known as Level 3 inputs, because they have a greater degree of uncertainty and subjectivity. Level 3 assets are typically illiquid assets whose value may be based on mathematical models. FASB has proposed that companies provide additional disclosures about any significant effects on the fair value of assets if the reporting entity were to use "reasonably possible" alternative inputs or market scenarios.
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