Yesterday, the Financial Accounting Standards Board released proposed FASB Staff Position (FSP) No. FAS 157-f, Measuring Liabilities under FASB Statement No. 157 [FAS 157 is entitled, Fair Value Measurement]. The proposed FSP discusses permissible valuation techniques and adjustments for determining the fair value of liabilities, and would require disclosure of "any change in valuation technique resulting from the application of this FSP, and quantify its effect, if practicable. Revisions resulting from a change in the valuation technique or its application shall be included in changes in fair value in the period of adoption."
The comment period on the proposed FSP ends June 1, and the proposed effective date is: "the first reporting period (including interim periods) beginning after issuance" of the final FSP, with earlier application permitted.
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