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To ensure consistency between IFRSs and US generally accepted accounting principles (GAAP), the proposals incorporate recent guidance on fair value measurement published by the US Financial Accounting Standards Board (FASB) and are consistent with a report of the IASB’s Expert Advisory Panel published in October 2008 on fair value measurement in illiquid markets.
This project forms part of a long-term programme by the IASB and the FASB to achieve convergence of IFRSs and US GAAP, as described in the boards’ Memorandum of Understanding published in September 2008. It is also consistent with requests from G20 leaders to align fair value measurement in IFRSs and US GAAP.
The IASB’s starting point in developing the exposure draft was the equivalent US standard, SFAS 157 Fair Value Measurements as amended. The proposed definition of fair value is identical to the definition in SFAS 157 and the supporting guidance is largely consistent with US GAAP.
Introducing the exposure draft, Sir David Tweedie, Chairman of the IASB, said:
This exposure draft is an important milestone in our response to the global financial crisis. It proposes clear and consistent guidance for the measurement of fair value and also addresses valuation issues arising in markets that have become inactive. The proposed guidance ensures consistency with US GAAP on issues related to fair value measurement and would achieve overall convergence with US GAAP.
The proposals are set out in the exposure draft Fair Value Measurement which is open for comment until 28 September 2009. The exposure draft is available on the ‘Open for Comment’ section on www.iasb.org. The IASB will hold a webcast to introduce the proposals in the exposure draft and will announce details on its website in due course.
For more information about the IASB’s response to the financial crisis, visit www.iasb.org/financial+crisis
Printed copies of the exposure draft (ISBN 978-1-907026-10-2) will be available shortly, at £12 plus shipping, from:
IASC Foundation Publications Department,
30 Cannon Street, London EC4M 6XH, United Kingdom.
Tel: +44 (0)20 7332 2730 Fax +44 (0)20 7332 2749
Email: publications@iasb.org Web: www.iasb.org
Press enquiries
For press enquiries, please contact:
- Mark Byatt, Director of Corporate Communications, IASB
Telephone: +44 (0)20 7246 6472
Email: mbyatt@iasb.org
- Sonja Horn, Communications Adviser, IASB
Telephone: +44 (0)20 7246 6463
Email: shorn@iasb.org
Technical enquiries
For technical enquiries, please contact:
- Peter Clark, Director of Research, IASB
Telephone: +44 (0)20 7246 6451
Email: pclark@iasb.org |