Determining fair values of financial instruments under IFRSs
13 Dec 2007
The six largest accounting networks under the auspices of the Global Public Policy Committee (GPPC) have jointly issued a paper entitled Determining Fair Value of Financial Instruments under IFRSs in Current Market Conditions.
The objective of the paper is to enhance awareness of the requirements of IFRSs in relation to the determination of fair value of financial instruments and related disclosures. It is similar to the paper issued by the Center for Audit Quality on Measurement of Fair Value in Illiquid (or Less Liquid) Markets under US GAAP (see our news story of 4 October 2007). A draft of this paper was shared with the Financial Stability Forum, some board members and staff of the IASB, Standing Committee No. 1 of IOSCO, and the Accounting Task Force of the Basel Committee on Banking Supervision. The GPPC group believes that drawing attention to the issues is helpful in advance of the 2007 year-end reporting season, particularly because this is the first time that IFRSs – and especially the literature relating to valuation of financial assets and liabilities – has been applied extensively in difficult market conditions.
Click to view Determining Fair Value of Financial Instruments under IFRSs in Current Market Conditions (PDF 54k).
