Fair Value Measurement – US GAAP and IFRS

Fair Value Measurement – US GAAP and IFRS

Your guide to applying fair value measurement requirements under both US GAAP and IFRS.


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KPMG IFRS Fair Value Measurement publication image: traders on an open outcry trading floor

Guidance in the two frameworks is substantially converged, but some differences remain.

What's the difference?

Fair value measurement is an area of IFRS and US GAAP that is substantially converged.

The respective standards establish a framework for measuring fair value, along with a fair value hierarchy based on the source of the inputs used to estimate fair value, and require disclosures about fair value measurements.

They do not establish new requirements for when fair value is required or permitted, but provide guidance on how it is measured.

But while the two standards seek to minimise the differences between IFRS and US GAAP, some differences arise due to the intersection of this guidance with other standards. 


Fair value measurement is not a static discipline – markets are constantly evolving.

New valuation methodologies emerge and are refined as they are tested in the marketplace and adopted by market participants. And as the fair value standards dictate, it is the market participant view that shapes fair value itself.

As a result, preparers of financial statements cannot be complacent about the methodologies being used to measure fair value. Management need to monitor developments in valuation techniques to ensure that their own valuation models appropriately reflect the types of inputs that market participants would consider.

Answering your questions on fair value

This updated edition of Questions and Answers focuses on fair value measurement, providing guidance on applying the standards and highlighting the handful of differences between IFRS and US GAAP.

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