SFAS 157: What is Market Value?

The Financial Accounting Standards Board recently issued a standard setting a single definition for fair market value. Prior to FASB Statement 157, more than 40 accounting standards required determination of fair value to comply with GAAP, but the definitions were inconsistent. The FASB asserts that the new standard is superior to the "mark to market" approach and that it requires greater disclosure if at least part of the value determination is not readily observable. The effective date of the standard will be November 15, 2007.