What unique challenges does this market segment face as it relates to fair value accounting and disclosures?
Our clients are facing accounting standards overload. Clearly, FAS 157 raises the bar in terms of documenting how fair values are determined. If a company has any assets or liabilities in either the Level 2 or 3 categories, we strongly recommend that they work with a firm or individual that is qualified to perform FAS 157 valuations to assist them with their fair value measurements and disclosures. (Your J.H. Cohn professional can provide recommendations.) Q: What additional steps should companies take when it comes to fair value? A: By now, most companies have adopted FAS 157 for the financial instruments adoption element. For the non-financial items, adoption will occur in 2009 and now is the time for companies to discuss with their auditors how they will determine fair values and how they will be evaluated. Fair value also impacts impairment measurements and business combinations. Q: Mark-to-market accounting and fair value measurements seem to be a primary target for criticism and
