Yes. Several FASB Staff Positions have been released to provide additional clarification to SFAS 157.

Based on the need for clarification there has recently been issued several FASB Staff Positions (FSP’s) including the following:

• FSP SFAS 157–3 and SFAS 157-4 – “Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active.”
  • FSP SFAS 157-3 provides an example of how to determine fair value under SFAS 157 when the market for the financial asset is not active, and
  • FSP SFAS 157-4 states that fair value represents the price that would be received in an orderly transaction under current market conditions and that distressed or disorderly transactions in an inactive market are not reflective of fair values.

• FSP SFAS 115-2 and SFAS 124-2 – “Recognition and Presentation of Other-Than-Temporary Impairments”
  • Guidance applies to debt securities and provides the management assertions necessary to classify an impairment as temporary. The FSP’s also require the classification of other than temporary impairments into two categories - credit losses and other.

• Proposed FSP SFAS 157–F – “Measuring Liabilities under FASB Statement No. 157.”
  • The FSP states that if an identical liability is not available, a company should try to minimize the use of unobservable inputs and measure fair value using one of the following approaches:
    1. The quoted price of the identical liability when traded as an asset in an active market; if an active market does not exist, then look to quoted price when traded in an inactive market.
    2. The quoted price for similar liabilities, when traded as an asset in markets that are active.
    3. Other valuation techniques — such as an income approach using a present value calculation or a market approach based on the amount a company would receive if it were to transfer the liability or enter into an identical liability at the measurement date.

AccuVal is intimately familiar with these standards and their implications with respect to accounting for investments and both tangible and intangible assets. Our financial reporting valuations satisfy this statement in all respects so clients can rest assured that a consistent framework is applied. When estimating fair value, market inputs should be used in valuing assets or liabilities. Backed by the world’s largest database of transaction information, AccuVal appraisers are well-equipped with current market data.