IASB Provides Update on Applying Fair Value in Inactive Markets

The International Accounting Standards Board (IASB) has provided an update on its work to consider the application of fair value when markets become inactive. According to Sir David Tweedie, Chairman of the IASB, "This press release says two things. First, that guidance within IFRS is already clear that distress sales should not be included in fair value measurement. Secondly, that recent guidance from the FASB is consistent with the findings of our own expert panel on illiquid markets." (Read the IASB Press Release.)