GASB Proposes Exposure Draft on Fair Value
To address fair value measurement accounting and financial reporting matters, the Governmental Accounting Standards Board (“GASB”) has issued an exposure draft for public comment. Entitled Fair Value Measurement and Application, the exposure draft explains how fair value is to be defined, assets and liabilities to be determined, and what information regarding fair value should be mentioned in financial statements. The GASB’s goal is to define fair value as the price that would be accepted to sell an asset or paid to shift a liability in a transaction between market participants at the date of measurement.
Comments regarding Fair Value Measurement and Application are due August 15th. In the meantime, the GASB will host a live webinar for auditors and preparers to discuss the exposure draft on July 15th. A live webinar for financial statement users will also be held on July 17th. Registration for both webinars will be available through the GASB’s website in the upcoming weeks.