The Financial Accounting Standards Board

1621 WordsOct 21, 20167 Pages
In September of 2006, The Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 157: Fair Value Measurements ("FAS 157") to provide guidance about how entities should determine fair value estimations for financial reporting purposes. These guidelines coincide with the conceptual framework and provide a baseline for accounting professionals to gauge the true worth of an asset. The goal of the conceptual framework to provide clear concise information across the accounting profession. It allows regulators to provide a uniform standard to individuals and companies, as well as providing a platform to roll out future account developments in the field. However, despite the best efforts of regulators, there is always bumps on the road to providing a smooth and compliant framework for accountants. Fair value measurements play a key role in today’s financial market place. There is a constant need to have accurate and readily available information on the true financial worth of assets. This need is driven by the ever-increasing speed of business and the ability for companies to have a completive advantage. A great example of this is when investors seek to find the true value of an investment and they need to have accurate information in order to make an informed decision about the investment they will make. Whether we realize it or not, there is a constant search for the true value of products and services that is being reflected in the
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