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.
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.