SFAS 157 - Fair Value Measurements

Oct. 2008

 

Valuation practices are an important aspect of any business, and in times of economic
strain, regulators have an increased incentive to ensure that users of financial statements
are able to rely on fair value measurements as consistent and comparable. In 2006, the
Financial Accounting Standards Board ("FASB") issued Statement of Financial
Accounting Standards No. 157 ("SFAS 157" or the "Statement"), which became effective
for financial statements issued for fiscal years beginning after November 15, 2007. The
Statement defines fair value and establishes a framework for measuring fair value in
accordance with generally accepted accounting principals ("GAAP"). In addition, the
Statement also expands disclosures about fair value measurements which will enable
users of those valuations to assess their reliability.

 

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