Project Update

FAS 157—Determining Fair Value When the Volume and Level of Activity for the Asset or Liability have Significantly Decreased and Identifying Transactions that are Not Orderly

Last Updated: April 23, 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 is to provide application guidance addressing the determination of (a) when a market for an asset for a liability is active or inactive and (b) when a particular transaction is distressed.

*Due Process Documents

On April 9, 2009, the Board completed this project with the issuance of FASB Staff Position (FSP) FAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly.

 FSP FAS 157-4  

 Comment Letter Summary 

*Decisions Reached at the Last Meeting (April 2, 2009)

See minutes below.

Summary of Decisions Reached to Date (as of April 2, 2009)

See final FSP.

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.

*April 2, 2009 Board Meeting —Discussion of comment letters, additional constituent feedback, and redeliberations
March 16, 2009 Board Meeting—Discussion of the proposed model for addressing the determination of whether a market is not active and whether a transaction is distressed

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 FASB Statement No. 157, Fair Value Measurements. 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 and other constituents.

Contact Information

Kristofer Anderson
Valuation Fellow
keanderson@fasb.org

Adrian Mills
Practice Fellow
aemills@fasb.org

Diane Inzano
Practice Fellow
dcinzano@fasb.org