The Commission considers that the IASB's position is fully consistent with the joint statement issued by the 3 European committees of supervisors and with similar guidance recently issued by the relevant US bodies.
The Commission welcomed the IASB guidance on the application of fair value measurement when markets become inactive. The Commission considers that the IASB's position is fully consistent with the joint statement issued by the 3 European committees of supervisors and with similar guidance recently issued by the relevant US bodies.
On 31 October, the IASB published its guidance on important measurement issues affecting the valuation of financial instruments when an active market does not exist. The IASB's guidance makes clear inter alia that transaction prices and broker or pricing service quotes might be inputs when measuring fair value, but may not be determinate if an active market does not exist.
The staff summary takes into consideration the recent clarifications issued by the staff of the US FASB and of the SEC Office of the Chief Accountant. It is also fully consistent with the joint statement issued by the 3 European committees of supervisors on 21 October.
Press release
© European Commission
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