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FASB Statements
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FASB 157 2006
Exemption for Certain Nonpublic Entities
- No blanket deferral of effective date
- For fiscal years beginning after 11.15.07,
companies will need to implement the standard for financial assets and liabilities, as well as for any other assets that are carried at fair value on
a recurring basis in financial statements
- However, FASB did provide one-year deferral for
other nonfinancial assets and liabilities (with exposure draft to be issued in
near future)
- Posted by SEC staff March 2008
- Letters sent to companies that reported a significant amount of asset-backed securities, loans carried at fair value or the lower of cost or market, and derivative assets and liabilities in
Form 10-K financials
FIN 45 2002
- Interprets FASB 107 re: guarantees /
indemnities
FASB 126 1996
Exemption for Certain Nonpublic Entities
FASB
107 1991
Disclosures about Fair Value of Financial Instruments
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SAS 101 Auditing
Fair Value Measurements and Disclosures
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Summary of SAS No. 101, Auditing Fair Value Measurements and Disclosures
- Effective for audit periods beginning on or after
6.15.03
- Contains significantly expanded guidance on the
audit procedures for fair value measurements and disclosures
- In recent years, the number of accounting standards
requiring fair value measurements and disclosures has increased significantly.
Practitioners have used the guidance in SAS No. 57, Auditing Accounting
Estimates, when evaluating fair value measurements and disclosures. However,
the ASB believed that, with the proliferation of accounting standards requiring
fair value measurements and the complexity and significance of some of these
estimates to the financial statements, auditing guidance that was specific to
fair value measurements was necessary
- SAS No. 101 provides guidance on auditing specific
assets, liabilities, components of equity, transactions, or industry-specific
practices. This standard requires that the auditors substantive tests
of fair value measurements involve:
- (1) testing managements significant assumptions,
the valuation model, and the underlying data,
- (2) developing independent fair value estimates
for corroborative purposes, or
- (3) examining subsequent events and transactions
that confirm or disconfirm the estimate. In testing managements significant
assumptions, the valuation model, and the underlying data, the auditor
evaluates whether:
Managements assumptions are reasonable and reflect,
or are not inconsistent with, market information.
The fair value measurement was determined using
an appropriate model, if applicable.
Management used relevant information that was
reasonably available at the time.
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SEC Accounting
FAQs
SEC_CODE_REF_0090001192884
PCAOB Guidance
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Staff
Audit Practice Alert No. 2 12.10.07
Remarks
by Mark W. Olson, Chairman 3.03.08
- Today's Global Audit Environment Annual
Washington Conference of the Institute for International Bankers
- Discussion of challenges
for auditors in determining fair value adjustments: training, bias and internal
controls
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Commentary
Archive
Related Topics
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