The impact of amendments to fair value measurement and disclosure requirements

Todd Briggs
Director, McGladrey

Jon Waterman
Partner, McGladrey

In May 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, as part of the convergence efforts with the International Accounting Standards Board (IASB). The amendments are intended mainly to provide converged requirements for fair value measurement and disclosure. For the most part, the amendments in the Update do not change the application of those requirements. Both nonpublic and public reporting entities should, however, be aware that these changes will have an impact on what is disclosed as well as the time and effort needed to accumulate the information needed to meet the disclosure requirements.