FASB fair value standard nears completion
02 Nov 2005
Responding to the growing emphasis on fair value in financial statements, in June 2004 the US FASB issued an Exposure Draft on Fair Value Measurements.
The ED would establish a framework for measuring fair values of both financial instruments and non-financial items. As a framework, the final standard will not expand current requirements for the use of fair value measurements in financial statements. Such changes would be considered in future standards. The FASB has recently posted on its Website a revised version it calls a Working Draft. A final standard is expected in late 2005. Here are a few highlights of the Working Draft and of major changes from the 2004 Exposure Draft, excerpted from the newsletter:
The IASB has on its research agenda a project on Measurement Objectives. A discussion paper is expected before the end of 2005.
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