Fair value for financial instruments – where to next?

Proposals for fair value measurement of all financial instruments in company financial statements have been subject to significant criticism. This article reviews the responses to the latest international proposals – those of the “Financial Instruments Joint Working Group of standard setters”. It concludes by recommending that the next steps to be taken in exploring this issue, rather than immediate standard setting, should be rigorous testing of the proposals with users and preparers of financial statements.