New Requirements for Measuring and Reporting Fair Value in GAAP‪.‬

Abstract Statement of Financial Accounting Standards No. 157, Fair Value Measurements, which was finally issued in September 2006, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. The standard gives guidance on how to measure fair value where it is permitted or required under more than 60 other accounting pronouncements. This paper provides a broad overview of recent major accounting standards requiring fair value accounting and reporting, and then focuses on the new formal guidance on fair value measurements.