FASB GUIDANCE ON FAIR VALUE OF LIABILITIES
Norwalk, Conn. - The Financial Accounting Standards Board has issued a proposed standard on the fair value measurement of liabilities, seeking to clarify the thorny issue of fair value a bit further.
The latest proposed FASB Staff Position, FSP FAS 157-f, provides guidance on the fair value measurement of liabilities under FASB Statement No. 157, Fair Value Measurements.
Statement 157 defines the fair value of a liability as the price that would be paid to transfer the liability in an orderly transaction between market participants at the measurement date, FASB noted. Under that definition, the liability to the counterparty is presumed to continue and is not settled.
Statement 157 also states that the fair value of a liability shall reflect the nonperformance risk (including, but not limited to, the reporting entity's own credit risk) relating to that liability, and that such nonperformance risk is the same before and after its transfer. A reporting entity is required to consider the effect of its own credit risk on the fair value of a liability in all periods in which the liability is measured at fair value.
Some entities are concerned that there may be a lack of observable market information to determine the fair value of a liability, and they asked FASB for guidance.
FASB is asking for comments by June 1. They can be e-mailed to director
DIXON HUGHES COMBINES WITH PRESSER LAHNEN
Jacksonville, Fla. - CPA firm Dixon Hughes plans to integrate the practice of Presser, Lahnen & Edelman effective June 1, expanding the super-regional Southeast firm to the Jacksonville, Fla., area.
PL&E was formed in 1986 and is an outgrowth of a firm co-founded by Neil Presser in 1966. Its offices are located in Jacksonville's Southpoint area. The firm will continue to operate at its current office, but under the Dixon Hughes PLLC brand name as of June 1. The integration of PL&E will add more than 50 personnel to Dixon Hughes, including seven PL&E shareholders who will join the firm.
MARKS PANETH MERGES IN ARTHUR GREENE
New York - Marks Paneth & Shron is merging in Arthur B. Greene & Co., giving MP&S a set of prominent entertainment and literary clients. As part of the deal, two Greene partners, Arthur B. Greene and Richard Guttenberg, along with 10 support staff, are joining MP&S's New York office. Financial terms of the deal were not disclosed.
The merger expands the MP&S tax and family office, as well as the business management services that the firm offers. Arthur B. Greene & Co. has over 300 clients, including some leading literary and entertainment figures.
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