Although it doesn’t plan on a comprehensive review of FASB Statement No. 157, Fair Value Measurements, the U.S. Financial Accounting Standards Board has decided to reach out to its stakeholders about certain aspects of the standard that some call “challenging.”

Some difficulties: The chairman of the FASB has submitted a letter to the Financial Accounting Foundation’s (FAF’s) Standard-Setting Process Oversight Committee acknowledging the results of the FAF's post-implementation review of the standard. The review team had concluded that the standard generally achieves its purpose and provides investors with decision-useful information. However, it also noted that some investors had difficulty understanding fair value information provided in financial statements. Also, some investors felt that the volume and extent of fair value disclosures were excessive, while others felt there were not enough. Also, some found it difficult to apply certain requirements of the standard for employee benefit plans, not-for-profit organizations, and private companies.

Therefore, the FASB has decided to reach out to its stakeholders on these aspects and will give consideration to the issues identified in the context of other initiatives of the FASB.