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The proposals would not introduce new measurements at fair value. However, guidance on measuring fair value is dispersed throughout IFRSs and is not always consistent. The IASB believes that establishing a concise definition of fair value and a single source of guidance for all fair value measurements required by IFRSs will both simplify IFRSs and improve the quality of fair value information included in financial reports.
The US FASB has recently issued an accounting standard, SFAS 157 Fair Value Measurements, on which work was well advanced before the IASB launched its own project. SFAS 157 establishes a single definition of fair value together with a framework for measuring fair value for financial reports prepared in accordance with US generally accepted accounting principles (US GAAP). Consistently with its commitment to the convergence of IFRSs and US GAAP, the IASB decided to use the US standard as the starting point for its own deliberations.
Deadline for comments is 2 April 2007. An exposure draft is planned to be published in 2008.