Earlier today (January 30), FASB released Proposed FSP FAS 107-b and APB 28-a, Interim Disclosures about Fair Value of Financial Instruments. The proposed FASB Staff Position (FSP) replaces the earlier proposed FSP FAS 107-a.
Synopsis: The proposed FSP would amend FAS 107, Disclosures about Fair Value of Financial Instruments, and amend APB Opinion No. 28, Interim Financial Reporting, to require disclosures about fair value of financial instruments in interim financial statements as well as in annual financial statements, effective with interim and annual reporting periods ending after March 15, 2009.
Specific requirements: Here are the specifics from the proposed FSP:
- This FSP applies to all financial instruments and entities within the scope of Statement 107.
- An entity shall include disclosures about the fair value of its financial instruments whenever it issues interim financial statements during that fiscal year.
- An entity shall disclose in the body or in the accompanying notes of its interim financial statements and its annual financial statements the fair value of all financial instruments, whether recognized or not recognized in the statement of financial position, as required by Statement 107.
- Fair value information disclosed in the notes shall be presented together with the related carrying amount in a form that makes it clear whether the fair value and carrying amount represent assets or liabilities and how the carrying amount relates to what is reported in the statement of financial position.
- An entity also shall disclose the method(s) and significant assumptions used to estimate the fair value of financial instruments.
- This FSP shall be effective for interim and annual reporting periods ending after March 15, 2009. This FSP does not require disclosures for earlier periods presented for comparative purposes at initial adoption. In periods after initial adoption, this FSP requires comparative disclosures only for periods ending subsequent to initial adoption.
Comment deadline: The comment deadline is March 2.
Props to Securities Mosaic for noting the issuance of the Proposed FSP in its weekly regulatory report!
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