Last week, FASB and the IASB published converged standards on fair value measurement and disclosure. This included FASB's issuance of Accounting Standards Update (ASU) 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, which updates the FASB Codification on fair value measurement (previously predominantly from FAS 157, Fair Value Measurement), and the IASB's issuance of IFRS 13, Fair Value Measurement.
As noted in the FASB in Focus providing highlights of the accounting standards update: "The amendments in this Update are to be applied prospectively. For public entities, the amendments are effective during interim and annual periods beginning after December 15, 2011. For nonpublic entities, the amendments are effective for annual periods beginning after December 15, 2011. Early application by public entities is not permitted. Nonpublic entities may apply the amendments in this Update early, but no earlier than for interim periods beginning after December 15, 2011." Seeadditional highlights on FASB's new standard.