chc93 ... I believe you hit the issue square on and back to the original question. What is fair market value for a stable value fund that holds guaranteed investment contracts? Is it contract value, or the value of the underlying investments? On page 21 of the FASB document Peter references above, BC8 and BC9 seem to indicate that these stable value funds are considered indirectly held FBRICs and "As such, while the amendments in Part I of this Update [ASU 2015-12] make it clear that those investments should no longer be reflected as fully benefit-responsive investment contracts, those investments may qualify for the practical expedient to measure at net asset value in Topic 820". In the financial statements of our stable value fund, NAV is calculated based on contract value, which seems to lead me to the logical conclusion that fair value is contract value, by way of NAV as a practical expedient.
That said, our recordkeeper, who prepares our 5500 for us, insists that fair value is the value of the underlying investments, and is not willing to budge on that. So, who's right?
