NEWS RELEASE 06/29/10
FASB Issues Proposed Accounting Standards Update on Amendments for Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSsNorwalk, CT, June 29, 2010—The Financial Accounting Standards Board (FASB) has issued an Exposure Draft of a proposed Accounting Standards Update (Update) intended to develop common requirements for measuring fair value and for disclosing information about fair value measurements in U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRSs).
The proposed Update sets forth amendments that the Boards believe would improve the comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and IFRSs. This proposed Update is the result of the Boards’ joint efforts to ensure that fair value will have the same meaning in U.S. GAAP and IFRSs and that their respective fair value measurement and disclosure requirements will be the same (except for minor differences in wording and style). The amendments in this proposed Update would apply to all reporting entities that are required or permitted to measure or disclose the fair value of an asset, a liability, or an instrument classified in shareholders’ equity in the financial statements.
The IASB is publishing a measurement uncertainty analysis disclosure proposal, Measurement Uncertainty Analysis Disclosure for Fair Value Measurements, which is the same as a proposed disclosure requirement in the proposed Update. Both Boards will jointly consider the comments received on their respective exposure drafts as they continue their discussions about fair value measurement after the exposure periods end.
“In our Memorandum of Understanding, the FASB and the International Accounting Standards Board set forth the goal of improving and converging our fair value measurement and disclosure requirements,” states FASB Technical Director Russ Golden. “The proposed Update contains the Boards’ ideas on how to achieve this goal, and we encourage our constituents to review and provide input on these proposed amendments and whether they agree that they will indeed accomplish this objective.”
The comment period for the proposed Update extends through September 7, 2010. The Exposure Draft is available at www.fasb.org.
About the Financial Accounting Standards Board
Since 1973, the Financial Accounting Standards Board has been the designated organization in the private sector for establishing standards of financial accounting and reporting. Those standards govern the preparation of financial reports and are officially recognized as authoritative by the Securities and Exchange Commission and the American Institute of Certified Public Accountants. Such standards are essential to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information. For more information about the FASB, visit our website at www.fasb.org.