Power and Utilities Alert: 2012- 3

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03/02/2012 by Power & utilities
Power and Utilities Alert: 2012- 3

At a glance

Fair value measurements have come under discussion and review by the Public Company Accounting Oversight Board (PCAOB) due to accounting guidance, changes in economic environments, financial instruments and valuation models. Recent SEC remarks have focused on management's responsibilities on using information from third party pricing services in fair value measurements and disclosures.

Use of third party pricing service information

This Power and Utilities Alert highlights the remarks related to third party pricing service information at the December 2011 AICPA National Conference on Current SEC and PCAOB Developments focusing on management's responsibilities relating to the use of third party pricing service information in three areas:

  • Compliance with accounting and disclosure requirements in accordance with generally accepted accounting principles (GAAP)
  • Maintenance of appropriate internal controls over financial reporting
  • Assessment of the effectiveness of internal controls over financial reporting