The International Accounting Standards Board has launched a project to eliminate the inconsistent methods of fair-value measurement that crop up throughout International Financial Reporting Standards.
The Board recently said that several of its standards require companies to measure assets, liabilities, and equity instruments at fair value, but they have no common definition of what “fair value” means or how it should be measured. The concept has been developed piecemeal over the years, as each new standard has been published.
