ABSTRACT

Previous chapters in this book have explained the nature of fair value, as well as how that term is used in existing International Financial Reporting Standards (IFRS) and is used in Statement of Financial Accounting Standards No. 157 (FAS 157),1 issued by the United States Financial Accounting Standards Board (FASB) in September 2006. The International Accounting Standards Board (IASB) proposes to make its definition of fair value convergent with that of the FASB. Thus, the IASB and FASB should soon have a common definition and use of the term ‘fair value’ to be applied whenever that term is referred to in accounting standards. Chapters 2 and 21 have also documented the increasing use of fair value by accounting standards setters.