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Fair value PIR and FASB fair value disclosure project [joint with FASB]

Date recorded:

Changes to the Disclosure Requirements for Fair Value Measurement (FASB Agenda Paper 6A)

Background

The FASB staff introduced the FASB’s Fair Value Measurement Disclosure project, which will make amendments to Topic 820, Fair Value Measurements, in the FASB Accounting Standards Codification. The FASB has completed its final deliberations and the Accounting Standards Update (ASU) will be published in the third quarter of 2018.

The staff provided an overview of the timeline and the review process. The staff also presented the FASB’s final decisions on changes to the disclosure requirements for fair value measurement.

Staff recommendation

As this was an education session, the staff did not recommend any decisions. They asked the boards whether there are any questions on the project.

Discussion

There was not much discussion on this topic. An IASB Board member asked why the disclosure of the valuation process for Level 3 fair value measurements was removed. The FASB staff said that this was not appropriate for the notes.

Post-implementation review of IFRS 13 Fair Value Measurement—Project Update (IASB Agenda Paper 6B)

Background

At this session the boards discussed the IASB’s PIR of IFRS 13 Fair Value Measurement. The IASB is currently in the process of preparing a Feedback Statement on the IFRS 13 PIR.

The IASB staff introduced the role of PIRs and provide some background on IFRS 13, including differences between Topic 820 and IFRS 13. The staff then summarised the focus areas of the PIR and the key messages received. The PIR confirmed that IFRS 13 is working well in practice and has improved financial reporting. The findings from the PIR regarding the usefulness of disclosures will be fed into the work on ‘Better Communication in Financial Reporting’. The staff will continue to liaise with the valuation profession, monitor new developments and promote knowledge development and sharing. Other than that, there will be no follow-up activities as a result from findings from the PIR.

Staff recommendation

As this was an education session, the staff did not recommend any decisions. They asked the boards whether there are any questions on the project.

Discussion

There was not much discussion on this topic. A FASB member asked whether the IASB had received any feedback on the fair value of liabilities. The IASB staff confirmed that there was some but it was not significant enough to have been discussed by the Board.

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