The IFRS Foundation and the International Valuation Standards Council (IVSC) have issued a joint statement of protocols for co-operation on the consistent measurement of fair value for financial reporting, which should lead to enhanced financial statements prepared in accordance with International Financial Reporting Standards (IFRS)
The aim of the agreement is to ensure that both organisations are able to cooperate effectively in this important area with each organisation continuing to assume sole responsibility for their standards.
The statement of protocols captures and recognises the nature of the present and continuing co-operation between the IVSC and the IFRS Foundation in developing standards and guidance on fair value measurement that will support financial statements prepared in accordance with IFRS.
Sir David Tweedie, chairman of the International Valuation Standards Council, said: ‘Strengthening the financial system requires the elimination of any significant differences in the way that fair value is understood, and consequently reported, between different sectors and markets.’
The full statement of protocols is available at http://www.ifrs.org/Use-around-the-world/Documents/IFRS-Foundation-IVSC-Protocol-February-2014.pdf