IASB and FASB quarterly report shows continued progress towards convergence goal
14 April 2010
As regard the Fair Value issue, the joint reports reveals that the FASB expects to issue an exposure draft of proposed amendments to its fair value measurement requirements so as to improve them and achieve convergence with the proposed IFRS.
The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) published a report on their work to improve and achieve convergence of International Financial Reporting Standards and US generally accepted accounting principles.
This report is presented in three parts:
· The first part describes changes the boards have made to their work methods to foster completion of their joint projects by the June 2011 target.
· The second part describes progress made on each project since the November 2009 report and updated milestone targets.
· The third part is a complete list of all documents the FASB and IASB expect to publish in connection with the completion of the MoU and the expected publication timing.
The next progress report is expected to be published in July 2010
On Fair Value Measurements the report shows:
The FASB issued Statement 157 Fair Value Measurements in 2006 and those requirements have been in effect since November 2007. In May 2009 the IASB published an exposure draft of an IFRS on fair value measurement. The exposure draft is largely consistent with the FASB requirements.
In November, the boards reached agreement on the following:
· Their objective is to ensure that fair value has the same meaning in US GAAP and IFRSs, by making US GAAP and IFRS fair value measurement requirements the same other than minor necessary differences in wording or style.
· The boards agreed to consider together the comments received on the IASB’s exposure draft. The FASB agreed to propose amendments to US GAAP fair value measurement requirements, if necessary.
· The boards also agreed that if they become aware of perceptions that the FASB and IFRS fair value measurement requirements are different they will work together to address those perceptions.
Milestone targets for fair value measurement
Q2 2010 : The FASB expects to issue an exposure draft of proposed amendments to its fair value measurement requirements that would improve them and achieve convergence with the proposed IFRS (previously expected to be issued in Q1 2010).
Q3 2010: The FASB expects to hold a public round-table meeting to discuss its proposal.
Q4 2010 : After the close of the public comment period for the FASB exposure draft, the boards will deliberate issues jointly, with a goal of issuing common standards in the fourth quarter.
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