Fair value measurements.

This article focuses on the Fair Value Measurements, an Exposure Draft (ED) on the topic, with a comment period ending in September 2004, issued by the U.S. Financial Accounting Standards Board on June 23, 2004. The proposed standard defines fair value, presents a hierarchy of fair value estimates, and discusses valuation techniques. In addition to the measurement provisions, the ED requires disclosures that are dependent on whether the asset or liability is remeasured at fair value on a recurring or nonrecurring basis. In the case of assets or liabilities remeasured on a nonrecurring basis, the following disclosures would be required: the reason for remeasurement, the fair value amounts, methods used for measuring these amounts, and the effect of remeasurement on earnings. The ED is proposed to be effective for fiscal years beginning after June 15, 2005, and interim periods included in those fiscal years.