AICPA Issues Two Q&As Related to Fair Value Measurement
Published on:
01 Mar 2013
The AICPA’s Investment Companies Expert Panel recently added the following two technical questions and answers (Q&As)1 to AICPA Technical Practice Aids TIS Section 6910, Investment Companies:
- TIS 6910.34, “Application of the Notion of Value Maximization for Measuring Fair Value of Debt and Controlling Equity Positions,” which discusses fair value measurement for a controlling equity investment combined with an investment in debt instruments issued by the investee when both investments are held by a private equity fund or business development company.
- TIS 6910.35, “Assessing Control When Measuring Fair Value,” which discusses the application of control premiums to controlling financial interests held by a single fund, multiple funds in the same fund complex under common control, or a group of unrelated investment managers through a “club deal.”
[1] The Q&As are nonauthoritative.