News Article - 04 December 2006
Category: Business

The International Accounting Standards Board (IASB) is inviting comment on its latest discussion paper on the topic of the measurement of fair value.

With the aim of establishing a concise definition of the procedure, the IASB will publish the paper as the first part of an explorative project to introduce consistency in how fair value is measured.

Sir David Tweedie, IASB Chairman, said: "The use of fair value in financial reporting is of great interest to preparers, auditors, users and regulators.

"We believe that an essential ground-clearing step in the debate is to establish a clear international definition of fair value and a consistent framework for measuring it."

He stated that the discussion paper did not seek to expand how fair value was used in financial reporting but how to simplify guidance which is already in existence.

For this to be achieved, the IASB is keen to receive personal views, Mr Tweedie added.

Comments are welcome until early April 2007, following which the board plans to publish an exposure draft of an international financial reporting standard (IFRS) on the measurement of fair value.

According to the IASB, guidance on how to measure fair value is spread out through various IFRSs, causing complexity. The board is aiming to establish a single source of guidance, clarify the term's definition and enhance disclosures.

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