CRE: Business Issues

Business Issues Forums

Fair Value

FASB will soon require that public companies report fair value in financial reporting. Many companies fear that this will be a costly change and that there will not be enough qualified consultants to assist in its measurement. This Forum will address the methods for reporting that are currently being used and the ways in which a consultant can improve the process.

Many believe there are not enough quality people to review this work and that it would be very costly to implement. This program will be informative as to how to develop partnerships between owners and accountants and consultants. A Counselor can make the process go smoother, maintain quality and be cost-effective.

Institutions approach Fair Value in many different ways:

Half of the institutions follow USPAP to the letter. Every asset they own has to be valued on an annual basis, with a restricted, summary or full appraisal.
Others choose to allow their investment managers to value a portion of the assets internally. Then the auditors hire the consultants to review a percentage of the valuations for reasonableness. This is less costly for pension funds.
Then there are other companies that have been doing fair value under international guidelines and they understand it. They value all assets once a year – half are valued internally, half externally. Restricted or summary reports are allowed.

How do you handle potential licensing issues and USPAP issues? There are pitfalls, issues, etc. about fair value and these will be discussed by experienced panelists.

There are no Fair Value Business Issues Forums scheduled at this time.

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