The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) last week issued new guidance on fair value measurement and disclosure requirements for International Financial Reporting Standards (IFRS) and U.S. generally-accepted accounting principles (GAAP).

The guidance, set out in IFRS 13 Fair Value Measurement and an update to Topic 820 in the FASB’s Accounting Standards Codification (formerly referred to as SFAS 157), completes a major project of the boards’ joint work to improve IFRS and U.S. GAAP and to bring about their convergence.

The harmonization of fair value measurement and disclosure requirements internationally also forms an important element of the boards’ response to the global financial crisis.

David Tweedie, chairman of the IASB, said: “The finalization of this project marks the completion of a major convergence project and is a fundamentally important element of our joint response to the global financial crisis. The result is clearer and more consistent guidance on measuring fair value, where its use is already required.”

FASB chair, Leslie Seidman, added that: “This Update represents another positive step toward the shared goal of globally converged accounting standards. Having a consistent meaning of the term ‘fair value’ will improve the consistency of financial information around the world. We are also responding to the request for enhanced disclosures about the assumptions used in fair value measurements.”

To link to the full text of the news release: click here.