Only 6 percent of companies have assessed how statement No. 157, “Fair Value Measurement,” will impact the valuation of their assets and liabilities, according to a recent online poll conducted by Deloitte Financial Advisory Services LLP.

The fair value statement from the Financial Accounting Standards Board Statement goes into effect for fiscal years beginning after Nov. 15, 2007. The statement enhances guidance on how to measure assets and liabilities at fair value and consolidates fair value measurement into a single accounting standard. The new standard does not require any new fair value measurements, but does introduce new disclosures intended to highlight the reliability of fair value measurements.

The Deloitte poll was conducted during a recent Web cast, which approximately 1,500 people -- including a majority of senior level managers within finance and accounting departments -- participated in.

"Historically, different definitions and measurement guidelines for fair value led to inconsistency and added to complexity in GAAP," said Stamos Nicholas, the leader of Deloitte business valuation practice. "Perhaps one of the biggest changes in the new rule is an outline of how certain intangible assets are valued, something valuation specialists have tried to develop through a patchwork of tax, accounting, and valuation concepts over the years."

The full text of the poll is available online, at www.deloitte.com/us/fairvaluerelease.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access