A little over a week ago, the Financial Accounting Standards Board (FASB) released Statement No. 157, Fair Value Measurement. According to FASB’s summary, the new Statement:

Defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements.

FSAS 157 does not trump other accounting pronouncements from the Board, and so does not require any new fair value measurements. “However, for some entities, the application of this Statement will change current practice,” most notably regarding applications of “exchange price” and other market-based measurements. The full statement is available at FASB.org; to read the summary, click here.