The proposed guidance on fair value measurement will also be referred to an Expert Advisory Panel established by the IASB in 2008 to consider fair value measurement in inactive markets. Educational guidance resulting from panel meetings was previously issued by the IASB in October 2008.

Feedback from interested parties and the panel will be considered by the IASB before deciding whether to publish formal proposals for public comment. A request for views will be published on the IASB website later this week.

Both of FASB’s proposals are in the form of draft Staff Positions (FSPs) and are intended to provide additional application guidance. The FASB has set a 15-day comment period, which will end on 1 April 2009. Further details are available on the FASB website at www.fasb.org.

In October 2008 the two boards committed themselves to a joint approach in dealing with reporting issues arising from the global financial crisis. The need for consistency between International Financial Reporting Standards (IFRSs) and US generally accepted accounting principles was emphasised by those attending the IASB/FASB round-table discussions on the financial crisis held in the fourth quarter of 2008 and was also the subject of requests by the leaders of the G20 group of nations when they met in Washington, DC, in November 2008. The IASB is also conscious of the need to account for views internationally through appropriate due process – another clear message arising at the round table discussions, expressed by national accounting standard setters, and other stakeholders internationally.

Commenting on the announcement Sir David Tweedie, Chairman of the IASB said:

Whilst these are US proposals specifically targeted at US capital markets we have been asked by the G20 and others to deal with financial reporting issues on a globally consistent basis. For this reason we are seeking views about the FASB proposals from our Fair Value Measurement Expert Advisory Panel as well as other interested parties.

Any proposed changes in IFRSs will be subject to due process.

A summary of the IASB’s response to the financial crisis is available on the IASB website on the Financial Crisis web page - www.iasb.org/financialcrisis