Project Update

FAS 157—Applying Fair Value to Interests in Alternative Investments

Last Updated: October 5, 2009 (Updated sections are indicated with an asterisk *)

The staff has prepared this summary of Board decisions for information purposes only. Those Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.

Project Objective
*Due Process Documents
Decisions Reached at the Last Meeting
*Summary of Decisions Reached to Date
*Next Steps
Board/Other Public Meeting Dates
Background Information
Contact Information

Project Objective

The objective of this project was to address the application of FASB Statement No. 157, Fair Value Measurements, to interests in alternative investments, such as hedge funds and private equity funds.

*Due Process Documents

In September 2009, the Board completed this project with the issuance of Accounting Standards Update No. 2009-12, Fair Value Measurements and Disclosures (Topic 820): Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent.)

Update No. 2009-12 

Comment Letter Summary 

Decisions Reached at the Last Meeting

FASB Action Alert—August 5, 2009

*Summary of Decisions Reached to Date

See Update No. 2009-12.

*Next Steps

None.

Board/Other Public Meeting Dates

The Board meeting minutes are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final Statement, Interpretation, FSP, or Statement 133 Implementation Issue.

August 5, 2009 Board Meeting—Discussion of comment letters received on the proposed FASB Staff Position FAS 157-g, Estimating the Fair Value of Investments in Investment Companies that Have Calculated Net Asset Value per Share in Accordance with the AICPA Audit and Accounting Guide, Investment Companies.
May 6, 2009 Board Meeting—Discussion of guidance for applying Statement 157 to interests in alternative investments

Background Information

At the February 18, 2009 meeting, Chairman Herz announced the addition of new FASB agenda projects intended to improve the application guidance used to determine fair values under Statement 157. The projects were added in response to recommendations contained in the Securities and Exchange Commission’s recent study on mark-to-market accounting, as well as input provided by the FASB’s Valuation Resource Group, a group of valuation and accounting professionals who provide the FASB Board and staff with information on implementation issues surrounding fair value measurements used for financial statement reporting purposes.

Contact Information

Kristofer Anderson
Valuation Fellow
keanderson@fasb.org

Adrian Mills
Practice Fellow
aemills@fasb.org

Diane Inzano
Practice Fellow
dcinzano@fasb.org