Proceedings

1. BACKGROUND
The main objective of our research is to find out the reaction the Exposure Draft
issued by IASB on Fair value measurement had on different types of respondents
(more precisely on big accounting companies, professional bodies, banks and banks’
regulators, universities, and so on). The main data comes from the IASB’ web site and
consists in the comment letters the responded submitted on IASB’s request.
As we will see, the vast majority of the respondents were in favour of the project,
even if they (almost) all had something to comment on specific issues. The main
objections of the respondents and their main suggestion were revealed as a result of
this piece of research.
We will not approach in this piece of research the subject of the validity of the fair
value model, its pros and cons, nor even the reaction of professional toward the fair
value model as a result of the financial crisis.
Our study contributes to the accounting literature by examining the users’ opinions on
the Exposure Draft issued by IASB in the first stage.
1.1. A short history of the ED on Fair Value Measurement
IASB’s intention is to provide a framework for measuring fair value and disclosure
about fair value. This ED does not introduce new fair value measurements, nor is
intended to change the rule neither of measuring the fair value nor for choosing a
model based on the fair value. IASB planed only to specify how entities should
measure fair value and disclose fair value information and not when entities should
measure assets and liabilities at fair value. The new coming Standard will only apply
when other IFRSs require or permit fair value measurements or disclosures and not to
measurements that are only similar to fair value in some respects.
Following the above mentioned discussion draft paper, in March 2008 the Board
published a discussion paper named Reducing Complexity in Reporting Financial
Instruments aiming to consider how to simplify the reporting of financial instruments,
including when fair value is an appropriate measurement basis for financial
instruments.
In March 2009 the Board issued Improving Disclosures about Financial Instruments.
That document aims to enhance disclosures about fair value measurements of
financial instruments.
1.2. Literature review
From our knowledge, there is no similar study conducted on this issue. On the other
hand, IASB by itself published a short letter with its own interpretation on the
respondents’ views and answer on the questionnaire. In order to be as objective as
possible, we did not read this material before conducting our study. We have
researched by our own the answers, and in the end we have made a comparison with
the findings of IASB. Our findings may be a little different from IASB’s and the
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