Valuation of Restricted Equity Securities: FASB Issues New Rules for Certain Investment Companies

On September 9, 2026, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2026-03, fundamentally changing how ASC 946 investment companies measure the fair value of equity securities subject to contractual sale restrictions. This update creates an exception to the ASU 2022-03 framework for investment companies within the scope of ASC 946 and requires them to consider the market participant impact of contractual sale restrictions.

Download your copy to evaluate how these finalized rules may affect your fund’s valuation policies, reporting controls, and Rule 2a-5 compliance.