The Financial Reporting Standards Council (FRSC) has issued an Invitation to Comment on an exposure draft, issued by the International Accounting Standards Board (IASB), of a proposed new standard on Fair Value Measurement.

If adopted, the proposed standard would replace fair value measurement guidance contained in individual International Financial Reporting Standards (IFRSs) with a single, unified definition of fair value, as well as further authoritative guidance on the application of fair value measurement in inactive markets. The proposed standard deals with how fair value should be measured when it is already required by existing standards. It does not extend its use in any way.

To ensure consistency between IFRSs and US generally accepted accounting principles (GAAP), the proposed standard incorporates recent guidance on fair value measurement published by the U.S. Financial Accounting Standards Board (FASB) and is consistent with a report of the IASB’s Expert Advisory Panel published in October 2008 on fair value measurement in illiquid markets.

The FRSC invites comments on the proposed new standard amendments by 26 August 2009.  Comments may also be sent electronically to the IASB through the open for comment section at www.iasb.org on or before 28 September 2009, the IASB comment deadline.

The FRSC Invitation to Comment and the IASB exposure draft Fair Value Measurement may be downloaded from the FRSC/PFRS website within the PICPA website at www.picpa.com.ph. The IASB exposure draft is also available on the open for comment section at www.iasb.org.