The proposed Update sets forth amendments that the Boards believe would improve the comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and IFRSs. This proposed Update is the result of the Boards' joint efforts to ensure that fair value will have the same meaning in U.S. GAAP and IFRSs and that their respective fair value measurement and disclosure requirements will be the same (except for minor differences in wording and style). The amendments in this proposed Update would apply to all reporting entities that are required or permitted to measure or disclose the fair value of an asset, a liability, or an instrument classified in shareholders' equity in the financial statements.

The IASB is publishing a measurement uncertainty analysis disclosure proposal, Measurement Uncertainty Analysis Disclosure for Fair Value Measurements, which is the same as a proposed disclosure requirement in the proposed Update. Both Boards will jointly consider the comments received on their respective exposure drafts as they continue their discussions about fair value measurement after the exposure periods end.

"In our Memorandum of Understanding, the FASB and the International Accounting Standards Board set forth the goal of improving and converging our fair value measurement and disclosure requirements," states FASB Technical Director Russ Golden. "The proposed Update contains the Boards' ideas on how to achieve this goal, and we encourage our constituents to review and provide input on these proposed amendments and whether they agree that they will indeed accomplish this objective."

The comment period for the proposed Update extends through September 7, 2010. The Exposure Draft is available at www.fasb.org.