BC211 The exposure draft proposed requiring an entity to disclose the amounts of significant transfers into or out of Level 1 and Level 2 of the fair value hierarchy and the reasons for those transfers. That disclosure was also required in Topic 820. In their discussions, the boards decided instead to require a disclosure of any transfers into or out of Levels 1 and 2. Respondents to the FASB’s proposed ASU generally did not support that proposal because it would require an entity to monitor all transfers on a daily basis, regardless of whether those transfers were significant. In addition, respondents were concerned about the accuracy of information about all transfers because there can be an unclear distinction between less active Level 1 fair value measurements and more active Level 2 fair value measurements.
BC212 The boards concluded that the objective of the disclosure is to provide information that will help users of financial statements assess changes in market and trading ac
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