GASB Proposal Would Expand Fair Value Measurement
In early May, the Governmental Accounting Standards Board (GASB) released an exposure draft, Fair Value Measurement and Application, which generally would require state and local governments to measure investments at fair value. GASB’s goal is to enhance comparability of governmental financial statements by requiring fair value measurement for certain assets and liabilities using a consistent definition and accepted valuation techniques. This proposal would expand fair value disclosures to provide financial statement users comprehensive information about the impact of fair value measurements on a government’s financial position. Comments are due August 15, 2014. If adopted, the requirements would be effective for financial statements for periods beginning after June 15, 2015, with early application permitted. This paper provides a detailed overview of the proposal.