The Fair Value Measurement project team is currently seeking input from practitioners in emerging and transition economies to help them identify any issues that might require additional clarification in the final IFRS on fair value measurements.
Some of the comment letters received on the exposure draft Fair Value Measurement indicated that entities in emerging and transition economies might find it difficult to apply the principles in the exposure draft in practice.
They are concerned that:
• the proposed fair value measurement guidance is not detailed enough to allow them to develop estimates of fair value on a consistent basis
• there is limited availability of practitioners who have the skills to apply the guidance (and as a result entities often are unfamiliar with applying the necessary judgements)
• there is limited access to market data to develop fair value measurements because there are few deep and active markets, there are often few willing buyers and sellers and prices often fluctuate considerably; and
• developing estimates of fair value (and preparing the resulting disclosures) will be expensive
Please send us examples or case studies of transactions or situations specific to your jurisdiction that would make the fair value measurement guidance as proposed in the exposure draft impractical.
What will we be doing with your input?
After reviewing the input we receive, the Board will consider either (a) amending the proposals in the exposure draft for the final IFRS if they are found to be inadequate in some situations or (b) publishing educational material to address the practical application of the fair value measurement principles (or a combination of both). This educational material would seek to address the concerns that we have identified through our outreach activities and how they relate to the fair value measurement guidance in the forthcoming IFRS.
Please send your examples to by 31 January 2010.