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Value and Decision Consulting
Fair Value Update
Public Company Accounting Oversight Board Keynote Presentation
The Public Company Accounting Oversight Board ("PCAOB") is a private-sector, nonprofit corporation created by the Sarbanes-Oxley Act of 2002 to oversee the auditors of public companies in order to protect investors and the public interest by promoting informative, fair, and independent audit reports.  Mark Zyla recently had the opportunity to speak about fair value at the PCAOB's Annual Inspections Division Training in Washington, D.C. 
Topics in his presentation included:
  • Trends Toward Fair Value Measurement in Financial Reporting
  • Where are we? An overview of Fair Value Accounting - SFAS 157, Fair Value Measurement (ASC 820)
  • Implementation issues in Topic 820 Fair Value Measurements and Disclosures ( SFAS 157)
  • Implementation Issues for Topic 805 Business Combinations (SFAS 141(R))
  • Status of the Valuation Profession's "Best Practices"
  • Valuation consideration for auditors
 For a more detailed outline of the valuation presentation, go to our website and click on Keynote Presentation to the PCAOB's Annual Inspections Division Training.
 

 

Fair Value Measurement and Disclosure-Update

The goal of the Joint Project of the International Accounting Standards Board ("IASB") and the Financial Accounting Standards Board ("FASB") is to align U.S. Generally Accepted Accounting Principles and International Financial Reporting Standards ("IFRS") and remove all but minor differences.  At the last meeting (March 31, 2010), the FASB discussed the scope, transition method, and comment period and decided:

·         Not to change the scope of FASB Accounting Standards Codification™ Topic 820 Fair Value Measurements and Disclosures

·         An entity would adopt the proposed changes that affect a fair value measurement using a limited retrospective method

·         An entity would be required to provide the additional proposed disclosures only for periods beginning after the changes are effective (prospectively).

·         The Board decided that the Exposure Draft would have a minimum of a 45-day comment period, ending August 16, 2010. The Board will discuss whether to allow early adoption when it decides on the effective date of a FASB Accounting Standards Update ("ASU"). The Board directed the staff to draft the proposed ASU for vote by written ballot.

·         The FASB intends to issue the proposed ASU by the end of second quarter 2010.

On the issue of fair value measurements of investments in certain entities that calculate net asset value ("NAV") per share, the IASB and FASB differ. IFRS doesn't have investment company accounting that requires assets to be measured at fair value rather than to be consolidated. An investor in an investment company entity under IFRS will measure its investment at fair value consistent with IAS 39. The FASB provided a practical expedient that permits an entity to measure the fair value of an investment in and investment company entity on the basis of NAV, under certain circumstances.

 
For more information on the current status of the Joint Project of the IASB and FASB, visit the FASB website.
 
As fair value experts, we will continue to keep you updated on recent events as information becomes available.

 

 
About Acuitas, Inc. 
Acuitas, Inc. is an Atlanta CPA firm that provides litigation and business valuation services.  Our experienced team has the depth, credentials, and industry expertise to produce quality results.
 
 
For more information contact:
Mark L. Zyla, Managing Director
phone: 404-898-1137

Mark Zyla
 
Mark L. Zyla
CPA/ABV, CFA, ASA