FASB proposes that funds discount shares they are contractually barred from selling

The Financial Accounting Standards Board proposed on July 1 that investment companies take account of a contractual sale restriction when they measure the fair value of an equity security. They would also have to disclose the size of the discount attributable to that restriction. The board said the change would align measurement with the value market participants would place on restricted shares. Investment companies would apply the amendments prospectively, and any adjustment on adoption would run through earnings. Early adoption would be permitted. No effective date is set. Comments close on July 17. FASB hosts the proposal on its own website, which blocks automated access, so Money & World could not verify a link and gives none here. Reported by Kevin Brewer at Journal of Accountancy.