Fair Value Measurement: Practical Guidance and Implementation, 2nd Edition

Preface

Fair value measurement continues to evolve since the first edition of Fair Value Measurements: Practical Guidance and Implementation was published at the end of 2009. Since then, the Financial Accounting Standards Board (FASB) has issued several additional standards and other clarifications of fair value accounting. Additionally, the accounting and valuation professions continue to develop best practices in measuring fair value. This second edition provides more detailed information and comprehensive examples about various aspects of measuring fair value, including the new standards and best practices.

The FASB and the International Accounting Standards Board (IASB) recently completed their convergence of fair value accounting standards through the FASB's introduction of ASU 2011-04 Fair Value Measurement (Topic 820) Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRs. The IFRS has issued a very similar companion statement IFRS 13 Fair Value Measurement. The purpose of these standards is to “develop common requirements for measuring fair value and for disclosing information about fair value measurements.” This second edition explains nuances created by these statements that impact fair value measurements. I also note that through convergence, a very minor change is that the FASB and IASB now agree to refer to fair value measurement in the singular. Consequently, this second edition's title was modified slightly to refer ...