NEWS RELEASE 06/21/07
Financial Accounting Standards Board to Form Resource Group on Valuation Guidance Issues
Norwalk, CT, June 21, 2007—In January 2007, the FASB issued an Invitation to Comment, Valuation Guidance for Financial Reporting, seeking views from constituents on (a) the need, if any, for valuation guidance related to the use of fair value measurements in financial reporting, (b) who should be involved in developing any such valuation guidance, and (c) the process and form of any such guidance-setting activities. Over 80 comment letters were received and posted to the FASB website. Additionally, the Board held a public roundtable on April 30, 2007, to enable constituents to elaborate on and discuss the issues raised in the Invitation to Comment.
Based on the feedback received through this process and consistent with its mission to improve and enhance the quality, consistency, and comparability of financial reporting, the FASB plans to form a resource group. This resource group will provide the Board with input on potential clarifying guidance on issues relating to the application of the principles of FASB Statement No. 157, Fair Value Measurements, to fair value information required or permitted under U.S. GAAP. This input will also include alternative views and practical solutions to such issues.
The resource group will be comprised of a cross section of constituents. Characteristics of the participants the Board will invite to join the resource group are expected to include:
- Current understanding of fair value measurements used for financial reporting purposes, including a thorough familiarity with Statement 157;
- Significant valuation, accounting, and/or auditing experience; and
- Ability and willingness to offer thorough and constructive input on the issues and alternatives facing valuation analyses performed for financial reporting purposes.
The FASB expects to hold the first resource group meeting in the third quarter of 2007 to assist the Board in evaluating any known implementation issues.
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.