Norwalk, Conn. (June 25, 2004) -- The Financial Accounting Standards Board has published an exposure draft on fair value measurements in response to requests from constituents to improve guidance for measuring fair value.


The exposure draft would expand current disclosures about the use of fair value to measure assets and liabilities. The disclosures focus on the methods used for the measurements and would apply whether the assets and liabilities are measured at fair value in all periods, such as trading securities, or only in some periods, such as impaired assets.


"I think this proposed standard will clarify the approach that should be used in estimating fair value," FASB member Leslie F. Seidman, board collaborator for the project, said. "The proposed disclosures should help investors evaluate the extent of fair value being used presently in the financial statements and the effect on earnings."


The board is accepting public comment on the exposure draft, which is available of the FASB Web site, www.fasb.org, until Sept. 7. The board will also hold a public roundtable on the issue in September to gather additional input.


-- WebCPA staff

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