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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