EFRAGs draft comment letter on IASB DP on Fair Value Measurements

XXX April, 2007 IASB 30 Cannon Street London EC4M 6XH UK Draft comment letter for comments by 19 April 2007 to Commentletter@efrag.org Re: Discussion Paper Fair Value Measurement On behalf of the European Financial Reporting Advisory Group (EFRAG) I am writing to comment on the Discussion Paper on Fair Vale Measurement. This letter is submitted in EFRAG’s capacity of contributing to IASB’s and IFRIC’s due process and does not necessarily indicate the conclusions that would be reached in its capacity of advising the European Commission on endorsement of the definitive IFRS on the issue. We have structured our response as follows. In appendix 1 we make some general comments about measurement, fair value measurement and the proposals in the discussion paper. In appendix 2 we set out our responses to the questions the IASB has raised. The comments made in those appendices are very briefly summarised in this covering letter. Our main comments can be summarised as follows. (a) Measurement is a fundamental aspect of accounting and we are pleased to see it is now to be considered within two major IASB projects: the Framework project and this Fair Value Measurements project. (i) In respect of the former, we support the IASB in its view that the overall objective should be to (i) develop clear and precise definitions of all the measurement bases that are candidates for use in financial statements, and (ii) develop a set of ...