The Financial Accounting Standards Board has issued an exposure draft giving companies the choice, but not a mandate, to report certain financial assets and liabilities at fair value.
Under the proposed statement, companies could measure financial assets and liabilities at fair value on a contract-by-contract basis, with the effect included in earnings. Assets and liabilities measured at fair value would be displayed separately from others measured under different attributes, and the choice to measure a given asset or liability using fair value would be irrevocable.
