EFRAG comments on IASB staff draft IFRS Fair Value Measurement
08 November 2010
EFRAG submitted a letter to the IASB in relation to the staff draft of the forthcoming IFRS on Fair Value Measurement.
The IASB published the Exposure Draft Fair Value Measurement in May 2009, which proposed comprehensive guidance on how to measure the fair value of both financial and non-financial assets and liabilities. EFRAG responded to the IASB, on 16 October 2010, supporting its efforts to provide such guidance while raising a number of concerns relating to the proposals. On 19 August 2010, the IASB issued a press release announcing that it had posted a staff draft of the forthcoming IFRS on fair value measurement on its website.
EFRAG understands that the IASB is not seeking comments on the staff draft. However, prior to the IASB finalising its standard on Fair Value Measurement, EFRAG believes it is useful to reiterate its earlier comments on due process and the clarity of wording in IFRS standards. Specifically, EFRAG urged the IASB to reconsider the work it had done and the conclusions it has reached on the applicability of the guidance to non-financial items, and subject the results of that reconsideration, together with the accompanying reasoning, to public consultation and debate. EFRAG notes that these are not new concerns, but rather repeat comments that were already subjected to EFRAG’s due process and submitted to the IASB in its letter dated 16 October 2009.
Press release
© EFRAG - European Financial Reporting Advisory Group
