FASB's Valuation Resource Group discusses 24 fair value issues

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14 May 2008

The US Financial Accounting Standards Board established a Valuation Resource Group (VRG) to provide the FASB staff with information about implementation issues regarding fair value measurements used in financial reporting.

The VRG met on 8 May 2008 and discussed four new valuation issues, as well as twenty ongoing issues. Deloitte & Touche LLP (United States) has published the 13 May 2008 edition of the Heads Up Newsletter (PDF 136k) explaining the four new and twenty ongoing issues:

Four New Valuation Resource Group Issues

  • VRG Issue No. 2008-7: Observable Versus Unobservable Fair Value Measurements in the Current Credit Environment – Factors Affecting the Reliability of an Observable Input
  • VRG Issue No. 2008-8: Determining Whether a Discount Should Be Applied for a Restriction on Sale
  • VRG Issue No. 2008-9: Employee Benefit Plans – Fair Value of Participant Loans
  • VRG Issue No. 2008-10: Contingent Liabilities – Using an Expected Value Computation

Twenty Ongoing Valuation Resource Group Issues

  • VRG Issues No. 2007-1: Fair Value of Mortgage Loans and No. 2007-2: Unit of Account – Decomposition of an Asset
  • VRG Issue No. 2007-3: How to Factor Liquidity Into Fair Value Measurements
  • VRG Issue No 2007-4: Elements of Consideration for Determination of 'Active Market'
  • VRG Issue No. 2007-5: Determination of Principal Market
  • VRG Issues No 2007-6: Highest and Best Use: Defensive Value and No. 2008-1: Accounting for an Asset That the Acquirer Does Not Intend to Use or Intends to Use in a Way Other Than Its Highest and Best Use
  • VRG Issue No. 2007-7: Assets Acquired Through an Auction
  • VRG Issue No 2007-8: Assets and Liabilities Without Markets
  • VRG Issue No. 2007-9: Pension Plan Disclosures
  • VRG Issue No 2007-10: Use of Net Asset Value in Fund-of-Funds Investments
  • VRG Issue No. 2007-11: Fair Value of a Liability With Third-Party Guarantees
  • VRG Issue No 2007-12: Highest and Best Use – Land Example
  • VRG Issue No. 2007-13: Definition of 'Significant' in Evaluating Inputs for Fair Value Hierarchy Classification
  • VRG Issue No 2007-14: Accounting for Transaction Costs in Determining the Fair Value of an Investment
  • VRG Issue 2008-2: Customer Relationships
  • VRG Issue 2008-3: Valuation of Intangible Assets Using the 'Current Replacement Cost' Method
  • VRG Issue 2008-4: Meaning of 'Legally Permissible' in Assessing the Highest and Best Use
  • VRG Issue 2008-5: Fair Value of Inventory
  • VRG Issue 2008-6: Allocation of Portfolio-based Credit Adjustments for Hedge Effectiveness Testing

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