United States

FAF Post-Implementation Report Addresses Fair Value Measurements

Mar 03, 2014
From the Financial Reporting View

The Financial Accounting Foundation (FAF) recently issued a post-implementation review report about FASB Statement No. 157, Fair Value Measurements (as codified in FASB ASC Topic 820, Fair Value Measurement). The review team concluded that Statement 157 generally achieved its purpose and is understandable for preparers, and that financial statements that apply Statement 157 provide investors with decision-useful information. However, some investors have difficulty understanding the fair value information that is in financial statements, and some stakeholders believe that the costs to apply Statement 157 are significant, particularly for smaller organizations.

The FAF is responsible for the oversight, administration, and finances of the FASB and the GASB. The FAF’s post-implementation review process is independent of the standard-setting process of the Boards and is intended to help the FAF Board of Trustees with its ongoing efforts to evaluate the effectiveness of the Boards’ standard-setting processes.

Read FAF Press Release

Read FAF Post-Implementation Review Report