The Financial Accounting Standards Board has released Statement 157, Fair Value Measurements, which defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Statement 157 does not require any new fair value measurements, but the application of this statement will change current practice for some entities, according to FASB.
The additional disclosures should provide better information about the extent to which fair value is used to measure recognized assets and liabilities, the inputs used to develop the measurements, and the effect of certain measurements on earnings (or changes in net assets) for the period, notes FASB. The statement is effective for financial statements issued for fiscal years beginning after Nov. 15, 2007, and interim periods within those fiscal years, but earlier application is encouraged.
Attend HFMA's Healthcare Accounting and Financial Reporting Conference in Atlanta Oct. 8-10.
