Explain the measurement and application of fair value based on GASB statement no. 72
Explain the measurement and application of fair value based on GASB statement no. 72
Volume 1, Issue 2, Winter 2020, Page 1 - 7
Authors : Zeynab Rostami , Saman Faghih Soleimani

Abstract :
Measuring fair value and applying it has always been an important issue. With the publication of International Financial Reporting Standards (IFRS), the issue of fair value has received more attention. In Iran, the adoption of IFRS also shows the attention to the fair value approach, so much so that the importance of this issue and its dimensions have led to the recent Iranian accounting standard (Standard 42) has been assigned to this concept. In the governmental sector, however, the issue is slightly different. In 2015, the US Governmental Accounting Standards Board (GASB) issued \"Statement No. 72,\" which measures and application of fair value. The Statement is designed to bring more clarity to areas of uncertainty—including direction on how to apply fair value when market values cannot be obtained and where management judgments are necessary. In this article, the most important aspects of this statement, especially the measurement, application and disclosure of fair value, will be discussed. The changes to current practice required by GASB Statement 72 aim to improve the consistency and comparability in how governments measure and apply fair value and disclose information about those measurements.

Keywords :
Fair value, GASB, Disclosure, Measurement, Governmental sector.