Most US companies have not assessed fair value impact of FAS 157

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17 May 2007

Only six percent of companies in the United States have assessed how FASB Statement 157 Fair Value Measurement will affect the valuation of their assets and liabilities, according to a recent online poll conducted by Deloitte Financial Advisory Services (FAS) LLP.

The poll was conducted during a Deloitte web cast on SFAS 157. Most of the approximately 1,500 participants in the web cast were senior level managers within finance and accounting departments in the financial services, telecommunications, and manufacturing industries. SFAS 157 enhances guidance on how to measure assets and liabilities at fair value and consolidates fair value measurement into one accounting standard. SFAS 157 would be applied whenever another accounting standard requires or permits a fair value measurement, such as impaired assets, assets and liabilities acquired in a business combination, and some financial assets and liabilities. It also introduces new disclosures intended to highlight the reliability of fair value measurements. SFAS 157 is effective for financial years beginning after 15 November 2007. The IASB has issued a Discussion Paper inviting comments on SFAS 157. Click for Summary of Poll Findings (PDF 68k).

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