New guidance was issued on March 1 by the Governmental Accounting Standards Board which defines fair value and how it should be measured in state and local government financial reporting. Under GASB Statement 72, fair value is defined as the price that would be received to sell and asset or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.
The statement also describes which assets and liabilities should be measured at fair value and what information about fair value should be disclosed in the financial statements. The guidance takes effect for financial statements for periods beginning after June 15, 2015. GASB encourages earlier application.
VACo Contact: Vicky Steinruck