The International Accounting Standards Board (IASB) is to seek views from interested parties on proposals from the US Financial Accounting Standards Board (US FASB) that deal with guidance on fair value measurement and impairments of financial instruments.
The FASB issued two proposed staff positions (FSPs) intended to provide additional application guidance regarding fair value measurements and impairments of securities.
- Proposed FSP FAS 157-e, Determining Whether a Market Is Not Active and a Transaction Is Not Distressed, provides guidelines for making fair value measurements more consistent with the principles presented in FASB Statement No. 157, Fair Value Measurements.
- Proposed FSP FAS 115-a, FAS 124-a, and EITF 99-20-b, Recognition and Presentation of Other-Than-Temporary Impairments, provides additional guidance designed to create greater clarity and consistency in accounting for and presenting impairment losses on securities.
Any proposed changes in IFRSs will be subject to due process. The FASB has set a 15-day comment period, which will end on 1 April 2009. Further details are available on the FASB website.