In May 2011, the FASB issued Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (the ASU).The ASU resulted from a joint project with the International Accounting Standards Board (IASB). The IASB also issued IFRS 13, Fair Value Measurement, in May 2011.
Many of the changes to existing fair value measurement guidance represent clarifications and are intended to align U.S. GAAP and IFRS. However, certain of the amendments to U.S. GAAPare substantive and several new disclosures are required.The U.S. GAAP amendments are effective for interim and annual periods beginning after December 15, 2011 for public entities and for annual periods beginning after December 15, 2011 for nonpublic entities.Preparation of the new disclosures will require a significant amount of effort in some cases. Companies should assess the information needed to prepare the new disclosures and identify any necessary process changes. This Dataline includes a series of questions and answers providing implementation guidance on selected new disclosure requirements.