Fair value measurement – IFRS and US GAAP | KPMG | GLOBAL

Fair value measurement – IFRS and US GAAP

Fair value measurement – IFRS and US GAAP

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

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

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 and required disclosures. They do not specify 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. 

We are pleased to help you navigate the differences by providing our current guidance in this third edition of Questions and answers (PDF 1.6 MB).

Comparability is the challenge

In an ever-changing world, achieving global comparability in measuring fair value is a continuous challenge.  

Fair value measurement is not a static discipline; new valuation methodologies are continually being created and refined. As a result, preparers of financial statements need to monitor developments in valuation techniques to ensure that their valuation models appropriately reflect the types of inputs that market participants would consider.

But monitoring alone isn’t sufficient. Regulators frequently question preparers about many areas of fair value measurement, including the appropriateness of the assumptions used and disclosures.  

Answering your questions on fair value

This updated edition of Questions and answers  (PDF 1.6 MB) 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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