IASB updates fair value rules ...

The International Accounting Standards Board (IASB) has issued a range of amendments to disclosure requirements relating to fair value rules.

Under the changes, firms will now have to supply additional information about the relative reliability of their fair value measurements.

The amendments, which take into account the views of the G20 group of nations, brings International Financial Reporting Standard (IFRS) 7 into line with the equivalent US rule.

Sir David Tweedie, chairman of the IASB, said: "The financial crisis has shown that a clear understanding of how entities determine the fair value of financial instruments, particularly when only limited information is available, is crucial to maintaining confidence in the financial markets."

The changes announced today will boost the clarity of financial reports, Sir David added.

Amendments to IFRS 7 will apply for annual periods beginning on or after January 1st 2009.

Meanwhile, the US Financial Accounting Standards Board is also conducting its own review into how fair value rules can be improved.