ASC 820 Fair Value Guide
Understanding fair value measurement standards
What Is ASC 820?
ASC 820, Fair Value Measurement, is the U.S. accounting standard that defines how companies measure and disclose the fair value of assets and liabilities. It sets out a consistent framework for valuation, disclosure, and transparency—ensuring that reported fair values reflect current market conditions and can be verified by auditors, regulators, and investors.
In plain terms, ASC 820 establishes a "fair value hierarchy" and requires organizations to base valuations on observable market data whenever possible, rather than subjective assumptions.
Why ASC 820 Matters
Accurate fair value measurement is no longer optional—it's central to financial integrity, audit readiness, and investor trust.
Compliance
Required by GAAP for financial statements, audits, and SEC reporting.
Transparency
Clarifies how valuations are determined and what data supports them.
Investor Confidence
Builds trust in financial reports and valuations during audits, fundraising, or M&A.
Governance
Demonstrates responsible and data-driven financial management to boards and regulators.
The Fair Value Hierarchy (Levels 1–3)
ASC 820 classifies inputs into three levels based on how observable they are in the market:
Quoted Prices in Active Markets
Quoted prices in active markets for identical assets or liabilities (e.g., public equities).
Observable Inputs
Observable inputs other than quoted prices (e.g., comparable transactions, market yields).
Unobservable Inputs
Unobservable inputs based on management assumptions or models (e.g., private company valuations, early-stage investments).
QuantPillar specializes in Level 2 and 3 valuations, where judgment and modeling accuracy matter most.
QuantPillar's AI-Driven Approach to ASC 820
Our AI Valuation Engine automates complex Level 2–3 analyses with precision and audit-ready traceability.
Real-Time Market Calibration
Dynamic link to industry and macroeconomic data feeds.
AI-Assisted Scenario Modeling
Simulates rate changes, funding shocks, or market volatility.
Benchmark Intelligence
Proprietary datasets on transaction multiples, cost of capital, and liquidity discounts.
Governance Layer
Built-in version control, audit trails, and standardized assumptions.
Backed by over 1.2 million hours of AI financial model training, QuantPillar ensures your valuations meet both ASC 820 and PCAOB audit standards—with less time, fewer manual errors, and higher confidence.
How QuantPillar Supports CFOs, Boards, and Auditors
CFO Office
Streamlines quarterly and annual fair value reviews, integrates directly with ERP data.
Board & Audit Committees
Provides consistent valuation narratives aligned with financial disclosures.
External Auditors
Delivers transparent model documentation and data lineage.
Integration with QuantPillar Pillars
Pillar 1 – Valuation AI
Core ASC 820 valuation automation and audit readiness.
Pillar 2 – Due Diligence AI
Independent model testing and third-party validation.
Pillar 3 – Expert Opinion
Certified valuation experts reviewing and signing off for compliance assurance.
When You Need an ASC 820 Valuation
Why Leading Firms Choose QuantPillar
AI Speed × Human Judgment
Automation where possible, expert oversight where necessary.
Audit Confidence
Full transparency and traceable model logic.
Dynamic Insights
Not just compliance—actionable intelligence for investors and management.
Start with Confidence
QuantPillar brings order to valuation complexity—transforming ASC 820 compliance into a strategic advantage.