The International Accounting Standards Board
(IASB) and the Financial Accounting Standards Board (FASB) have
issued guidance on fair value measurement and disclosure applicable
to IFRSs and US GAAP.
The guidance, set out in IFRS 13 Fair Value
Measurement and an update to the FASB’s Accounting Standards
Codification (formerly referred to as SFAS 157), completes a five
year project of the boards’ joint work to improve IFRSs and US
GAAP, and bring about their convergence.
The harmonisation of fair value measurement
and disclosure requirements internationally also forms an important
element of the boards’ response to the global financial crisis.
IASB chairman David Tweedie said that the
project “marks the completion of a major convergence project and is
a fundamentally important element of our joint response to the
global financial crisis.”
FASB chairman Leslie Seidman said that a
consistent meaning for the term ‘fair value’ will improve the
consistency of financial information around the world.
“We are also responding to the request for
enhanced disclosures about the assumptions used in fair value
measurements,” she added.