GASB posts report on fair value standard

The Governmental Accounting Standards Board today published a post-implementation review report on GASB Statement No. 72, Fair Value Measurement and Application.

The report, issued by GASB staff, says the fair value standard met the three PIR objectives: The standards accomplish their stated purpose, costs and benefits are in line with expectations, and the Board followed its standard-setting process. 

The report concludes that Statement 72 resolved the underlying need for the statement, which involved valuation issues from a financial reporting perspective. It also concludes that the statement was operational and its application provides financial-report users with decision-useful information such as fair value measurements used in the analysis of governmental financial information and fair value-related disclosures.

Statement 72 is eligible to undergo more extensive PIR procedures, culminating in a final report.