Request for views on FASB proposals
14 April 2009
On 9 April 2009, the US Financial Accounting Standards Board (FASB) finalised and issued FASB Staff Positions (FSPs):
- FSP FAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly
- FSP FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments
- FSP FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments
For further details please refer to the FASB website at http://www.fasb.org.
The following Request for views relate to the initial proposals published by the FASB on 17 March 2009. From now please refer to the finalised FSPs in submitting views to the IASB.
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The International Accounting Standards Board (IASB) seeks views from interested parties on proposals from the US Financial Accounting Standards Board (FASB) that deal with guidance on fair value measurement and impairments of financial instruments.
Feedback from interested parties will be considered by the IASB before deciding whether to publish formal proposals for public comment. Any proposed changes in International Financial Reporting Standards (IFRSs) will be subject to due process. |
Further information
- Download the Request for views [PDF] on Proposed FASB Amendments on Fair Value Measurement;Proposed FASB Amendments to Impairment Requirements for Certain Investments in Debt and Equity Securities.
- Click here for the views received.
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Both of FASB’s proposals are in the form of draft Staff Positions (FSPs) and are intended to provide additional application guidance on fair value measurement and to amend the impairment requirements for certain investments in debt and equity securities. They are:
- Proposed FSP No. FAS 157-e Determining Whether a Market is Not Active and a Transaction is Not Distressed.
- Proposed FSP No. FAS 115-a, FAS 124-a, and EITF 99-20-b Recognition and Presentation of Other-Than-Temporary Impairments.
The FASB has set a 15-day comment period, which will end on 1 April 2009. Further details are available on the FASB website at http://www.fasb.org.
In October 2008 the two boards committed themselves to a joint approach in dealing with reporting issues arising from the global financial crisis. The need for consistency between IFRSs and US generally accepted accounting principles (GAAP) was emphasised by those attending the IASB/FASB round table discussions on the financial crisis held in the fourth quarter of 2008 and was also the subject of requests by the leaders of the G20 group of nations when they met in Washington, DC, in November 2008. The IASB is also conscious of the need to account for views internationally through appropriate due process – another clear message arising at the round table discussions, expressed by national accounting standard setters, and other stakeholders internationally.
The IASB has an active project on fair value measurements. The Board plans to publish an exposure draft towards the beginning of the second quarter of 2009. When preparing an exposure draft the Board will consider the requirements of FASB’s Statement of Financial Accounting Standards No. 157 Fair Value Measurements. However, the IASB’s exposure draft might differ from SFAS 157 in its requirements and wording. Click here to view the project page.
Also, both the IASB and the FASB each added a project on the recognition and measurement of financial instruments to the active agenda. This broader project comprehensively reviews the existing requirements regarding the reporting for financial instruments. The IASB expects this project to result in the replacement of IAS 39 Financial Instruments: Recognition and Measurement. Click here to view the project page.
The IASB would like to receive any views from interested parties by 20 April 2009. Respondents should communicate their views by email to: iasb@iasb.org.
The deadline for submitting views has now passed.
All responses will be put on the public record unless the respondent requests confidentiality. However, such requests will not normally be granted unless supported by good reason, such as commercial confidence.