ALI - ABA: Mark-to-Market Accounting, FASB Issues Final Position on FAS 157

5/13/2009

Teleconference/Webcast

Speaking Engagement

What You Will Learn:

  • On April 9, 2009, the Financial Accounting Standards Board (FASB) completed its review of FAS 157 with the issuance of FASB Staff Position (FSP) 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly. This FSP relates to the proposed FSP 157-e, Determining Whether a Market Is Not Active and a Transaction Is Not Distressed, as amended as a result of the comment procedure.
  • Some have cried that “mark-to-market” accounting caused bank failures; other studies indicate that the banks failed for reasons more related to a loss of investor confidence and a marked decline in their ability to extend credit, rather than from any market fair value requirements.
  • The goal of valuing assets according to fair market value has been to provide transparency and objective standards for investors. Giving banks and other holders of distressed assets the opportunity to value potentially toxic assets using individual judgment, and perhaps basing fair value on certain computer models rather than real-world market information, gives rise to concerns about manipulation.
  • Many experts question the advisability of relaxing fair value standards, despite the fact that the economy is operating in unfamiliar territory. Thus, the FASB’s guidance is currently in an evolving state as the Board tries to maintain its independence amidst growing political pressures to help big banks holding devalued assets.
  • To help you make sense of the current valuation landscape, hear from experienced practitioners in securities law and fair value accounting on how best to advise your clients on proper accounting and disclosure practices: Mary J. Mullany, Ballard Spahr Andrews & Ingersoll, LLP, Philadelphia; David M. Lynn, Morrison & Foerster, LLP, Washington, D.C.; and Edward P. Trainor, Deloitte Financial Advisory Services, Philadelphia.

For more information on this program or to register to attend, follow this link: http://www.ali-aba.org/index.cfm?fuseaction=courses.course&course_code=TSPP04

Speakers:

David M. Lynn, Morrison & Foerster LLP, Washington, D.C.
Edward P. Trainor, Deloitte Financial Advisory Services LLP, Philadelphia

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