IASB Publishes Final Report Of Expert Advisory Panel On Fair Value

October 31, 2008
FEI Summary

On Oct. 31, 2008 the International Accounting Standards Board announced the publication of the final Report of the IASB Expert Advisory Panel on “Measuring and disclosing the fair value of financial instruments in markets that are no longer active.”

The 84-page IASB report includes an accompanying IASB Staff Summary (8 pages) on, “Using judgment to measure the fair value of financial instruments when markets are no longer active.”

IASB describes this guidance as “educational,” and states: “The summary document [IASB staff summary] sets out the context of the expert advisory panel report and highlights important issues associated with measuring the fair value of financial instruments when markets become inactive. It takes into consideration and is consistent with recent documents issued by the Financial Accounting Standards Board on 10 October and by the Office of the Chief Accountant of the U.S. Securities and Exchange Commission and FASB staff on 30 September.”

Prepared Oct. 31, 2008 by Edith Orenstein, Director, Technical Policy Analysis, Financial Executives International (FEI). This summary does not reflect FEI opinion unless specifically noted above.