Fair Value Measurement
Educational material on fair value measurement
The Boards discussed the nature and content of the planned educational guidance for measuring the fair value of difficult-to-value assets and liabilities. The IASB has solicited feedback about the practical application of fair value measurement principles in emerging and transition economies through extensive outreach and request for input. Based on the feedback received, constituents asked for further guidance on how the principles should be applied in more challenging situations.
Some Board members were concerned that the proposed guidance was too broad and would cover application of judgement. Other Board members noted that if the guidance is necessary it should be included in the Standard itself. They also expressed their concerns how such non-authoritative guidance would interact with IVSC Guidance noted (for instance, the recently published Guidance Note on valuation of intangibles).
Finally, the Boards agreed that the guidance should be similar to the guidance published by the Expert Advisory Panel and include examples (case studies) of how to apply the fair value measurement principles in practice. When preparing the guidance, the staff would consider whether some of the examples should be included in the Standard itself. Nonetheless, the staff noted that based on the IASB's approach in other Standards, the majority of the examples would be included in the educational material. The Boards expect to publish this education material a few months after publication of the final IFRS (currently planned for the third quarter of 2010).