Problem
Let's see how the IFRS and the Codification are related. Until recently there was limited guidance in IFRS on how to measure fair value and in some cases the guidance was conflicting. To remedy this, the International Accounting Standards Board (IASB) issued IFRS 13Fair Value Measurement (the standard) in May 2011. The standard was the result of a convergence project between the IASB and the US Financial Accounting Standards Board (FASB). Why is fair value critical to U.S. GAAP and IFRS and how do they differ in the application of fair value?