Clarifications on Fair Value Accounting

The current market environment makes the determination of fair value particularly challenging for preparers, auditors and users of financial information. In the United States, the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB) have engaged in extensive consultations with participants in the capital markets including investors, preparers and auditors, on the application of fair value measurements. The FASB will propose additional interpretative guidance on fair value measurement under US GAAP later this week. (Read the SEC Press Release.)