FASB says fair value compliance will go ahead

The US standard-setter has decided against giving companies a 12-month
extension for the application of fair value.

The Financial Accounting Standards Board has instead decided to maintain the
effective date of November 15, from which the standard becomes effective.

FASB board members decided on Wednesday that a ‘wholesale’ deferral of the
standard – which allows valuation based on current market estimates rather than
historical costs – would overly delay implementation and wouldn’t necessarily
allow corporates to be better ready to comply with the standard.

Board members also suggested the request for delay – by the IMA and Financial
Executives International – could be managers engaging in a delaying tactic.

Board members said they were, however, open to deferring the standard for
private and smaller public companies.

Further reading:

FASB to discuss delay of Fair Value

BT’s Rake calls for convergence slowdown

US firms seek extension on fair-value

Related reading

Fiona Westwood of Smith and Williamson.