The
International Accounting Standards Board (IASB) published guidance on
the application of fair value measurement when markets become
inactive. The guidance includes a report by an expert advisory panel
established to consider the issue, as well as a summary document
highlighting important issues associated with measuring the fair value
of financial instruments when markets become inactive. The summary
takes into consideration and is consistent with documents issued by
FASB on Oct. 10 and by the Office of the Chief Accountant of the SEC
and FASB staff on Sept. 30, according to an IASB news release. The
guidance can be downloaded at www.iasb.org/expert-advisory-panel.
A comprehensive summary of the IASB response to the credit crisis is
available at www.iasb.org/credit+crisis.
The
IASB and FASB announced that they will create a global advisory group
comprising regulators, preparers, auditors, investors and other users
of financial statements. The advisory group will help to ensure that
reporting issues arising from the global economic crisis are
considered in an internationally coordinated manner. For more
information, visit www.iasb.org or www.fasb.org.
