How does FAS 157 apply to alternative investments?
Since alternative investments do not have readily available quoted market prices, FAS 157 provides guidance on how to determine the fair values of such investments. FAS 157 also requires additional disclosures pertaining to the fair value measurements of alternative investments. The AICPA EBPAQC’s report, “Alternative Investments in Employee Benefit Plans,” can help you identify alternative investments and understand valuation methods for them. This report also discusses reports commonly used in supporting valuations and offers references to accounting and auditing professional literature on alternative investments.
