Fair value measurement
Fair value accounting continues to be a topic of significant interest and debate. With unprecedented market events, turmoil in the credit markets, and a downturn in the global economy in recent years, discussion of fair value has intensified. This discussion made clear the need for consistent fair value measurements in a global market. To that end, the fair value guidance is a principles-based global framework that, with few exceptions, impacts all fair value measurements in a reporting entity’s financial statements.
Post-implementation review underway: The FAF has begun its post-implementation review ("PIR") of Statement 157, the pre-codification predecessor to ASC 820. The PIR seeks to determine if the standard is achieving its stated purpose, evaluate its implementation and continuing compliance costs, and provide recommendations to improve the standard-setting process.
Quarter closeThe quarter close — First quarter 2014: Publication and new video perspectives
3/17/14 | Assurance services
This edition updates you on recent FASB, SEC and other regulatory and corporate governance topics. Learn what's new now, and what to look for in the near future. We invite you to download our Q1 publication and view our new video perspectives.
- Global valuation standards: achievable?
3/4/14 | Assurance services
PwC Global valuations leader John Glynn and director Caroline Woodward explain how global valuation standards are worth pursuing, regardless of the obstacles likely to be encountered en route. And with a new chairman in place at the IVSC, the time could be right.
Corporate Governance SeriesShareholder questions: Management's considerations for 2014 annual meetings
3/3/14 | Assurance services
This PwC publication is intended to help management and the board of directors of public companies prepare for the annual meeting of shareholders. It contains example questions on topics that may be top-of-mind for shareholders, along with background information and suggested actions for management’s consideration.
Dataline / In depthDataline: Highlights of the 2013 AICPA National Conference on Banks and Savings Institutions (No. 2013-26)
12/12/13 | Assurance services
At the 2013 AICPA National Conference on Banks and Savings Institutions, regulators and standard setters shared views on top-of-mind issues for financial institutions.
Quarter closeThe quarter close — Fourth quarter 2013: Publication and new video perspectives
12/10/13 | Assurance services
This edition updates you on recent FASB, SEC and other regulatory and corporate governance topics. Learn what's new now, and what to look for in the near future. We invite you to download our Q4 publication and view our new video perspectives.
Dataline / In depthDataline: Derivative valuation: The transition to OIS discounting (No. 2013-25)
12/10/13 | Assurance services
Derivative pricing practices have evolved in recent years to reflect the funding benefit of collateral when that collateral can be rehypothecated. In fact, some collateralized derivatives may now need to be valued based on discounting at the Overnight Indexed Swap (“OIS”) rate.
Dataline / In depthDataline: Testing Goodwill for Impairment - AICPA issues Accounting and Valuation Guide (No. 2013-24)
11/25/13 | Assurance services
Issues continue to arise in connection with goodwill impairment testing. A new AICPA guide provides guidance and illustrations related to goodwill impairment testing.
Point of viewPoint of view: Global valuation standards - Charting a course for the future
9/25/13 | Assurance services
In our view, a leading global valuation standard setter can enhance quality, promote consistency in practice, and advance the brand of the valuation profession.
Point of viewPoint of view: The valuation profession - At a crossroads
9/25/13 | Assurance services
In our view, the time has come for the valuation profession to explore creating a robust professional infrastructure for those that perform valuations.
Quarter closeThe quarter close — Third quarter 2013: Publication and new video perspectives
9/17/13 | Assurance services
This edition updates you on recent FASB, SEC and other regulatory and corporate governance topics. Learn what's new now, and what to look for in the near future. We invite you to download our Q3 publication and view our new video perspectives.
Accounting guidesGlobal Guide to Accounting for Fair Value Measurements - 2013 edition
8/23/13 | Assurance services
PwC is pleased to offer the 2013 edition of our popular publication, A Global Guide to Accounting for Fair Value Measurements, the inaugural global edition.
Dataline / In depthDataline: Valuation of Privately-Held-Company Equity Securities Issued as Compensation -- AICPA issues updated Accounting and Valuation Guide (No. 2013-17)
7/25/13 | Assurance services
On May 29, 2013, the AICPA's Financial Reporting Executive Committee issued the AICPA Accounting and Valuation Guide, Valuation of Privately-Held-Company Equity Securities Issued as Compensation (the Guide), which replaces the 2004 edition of the practice aid on this topic. The Guide (also known as the Cheap Stock Guide) provides nonauthoritative valuation guidance and illustrations for preparers, auditors, and valuation specialists related to the issuance of privately-held company equity securities for compensation. This Dataline provides a high level overview of the Guide.
In briefIn brief: FASB finalizes standard deferring certain quantitative disclosures for nonpublic employee benefit plans (No. 2013-36)
7/10/13 | Assurance services
The FASB issued ASU 2013-09. It provides an indefinite deferral for certain quantitative fair value disclosures for nonpublic employee benefit plans.
Quarter closeThe quarter close — Second quarter 2013: Publication and new video perspectives
6/18/13 | Assurance services
This edition updates you on recent FASB, SEC and other regulatory and corporate governance topics. Learn what's new now, and what to look for in the near future. We invite you to download our Q2 publication and view our new video perspectives.
EITF observerEITF observer: A meeting synopsis - June 2013
6/14/13 | Assurance services
The EITF met on June 11, 2013 to discuss six issues. PwC's EITF observer provides you an insightful summary of decisions reached and the changes affecting US GAAP.
PwC comment letter (FASB)PwC comments on deferral of the effective date of certain fair value disclosures for employee benefit plans
5/30/13 | Assurance services
PwC agrees with the proposal to defer certain of the fair value disclosures for nonpublic employee benefit plans and supports the inclusion of the new glossary term.
In briefIn brief: FASB proposes to defer quantitative disclosures for nonpublic employee benefit plans (No. 2013-23)
5/2/13 | Assurance services
On April 30, 2013, the FASB issued a proposal that would indefinitely defer for nonpublic employee benefit plans certain quantitative fair value disclosures for investments in their plan sponsors' nonpublic entity equity securities. Comments on the FASB's exposure draft are due May 31, 2013. This In brief article provides an overview the FASB's proposal.
Tax accounting insightsTax considerations relating to fair value accounting
3/25/13 | Tax accounting services
PwC has refreshed our 'Fair Value Accounting: Tax Considerations' publication (originally released in December 2008).
Quarter closeThe quarter close — First quarter 2013: Publication and new video perspectives
3/18/13 | Assurance services
This edition of The quarter close highlights current developments in financial reporting, including key standard-setting developments in revenue, financial instruments, and other hot topics, as well as SEC and PCAOB regulatory updates.
Quarter closeThe quarter close — Fourth quarter 2012: Publication and new video perspectives
12/12/12 | Assurance services
This edition of The quarter close has the latest updates and timely reminders to help you navigate your year-end reporting process with a number of hot topics, including fair value, asset impairments, pensions, valuation allowances, and more.
Dataline / In depthDataline: Financial instruments classification and measurement - An update on the FASB's tentative approach to be exposed in Q1 2013 (No. 2012-21)
12/7/12 | Assurance services
Classification and measurement is an important part of the FASB and IASB’s joint project on financial instruments. This Dataline provides a summary of the boards' decisions that is based on the project summaries posted on their websites, our observations of their meetings, and our understanding of their intent.
Dataline / In depthDataline: 2012 year-end accounting and reporting considerations - Leading practices and lessons learned on key topics (No. 2012-20)
12/3/12 | Assurance services
This year end, entities continue to face many complex financial reporting issues such as providing new fair value disclosures, accounting for debt modifications, and evaluating revenue recognition guidance. Economic challenges around the world continue to have broad financial reporting implications. While not an all-inclusive list, this Dataline is intended to serve as a timely reminder of leading practices and lessons learned on key issues that companies should consider as they navigate the year-end financial reporting process.
Dataline / In depthDataline: Highlights of the 2012 AICPA National Conference on Banks and Savings Institutions (No. 2012-14)
10/18/12 | Assurance services
The 2012 AICPA National Conference on Banks and Savings Institutions was held September 10 through 12, 2012 in Washington, DC. Representatives from the banking regulators, SEC, and standard setters presented at the Conference along with auditors, users, preparers, and industry experts. Presenters expressed views on a wide range of important accounting, auditing, and financial reporting topics. This Dataline provides highlights of topics discussed at the Conference.
Quarter closeThe quarter close — Third quarter 2012: Publication and new video perspectives now available
9/17/12 | Assurance services
This edition of The quarter close highlights the SEC report on IFRS, the latest on conflict minerals, health care reform, and several FASB releases that are sure to keep you busy this fall. Video perspectives are also now available.
Dataline / In depthDataline: New fair value measurement standard -- Adoption of the new guidance: First quarter 2012 measurement and disclosure observations (No. 2012-05)
6/14/12 | Assurance services
This PwC Dataline provides observations on how new fair value guidance was implemented in the first quarter by a sample of 37 companies from a variety of industries. It identifies leading practices and points of interest to assist reporting entities as they develop their future fair value disclosures. The companies we sampled are from a variety of industries, including (1) financial services - banking and capital markets, asset management, and insurance, and (2) other industries - utilities, energy, manufacturing, and real estate.
EITF observerEITF observer: A meeting synopsis - March 2012
3/18/12 | Assurance services
At the EITF's March 15 meeting, the EITF discussed six Issues, reaching a consensus-for-exposure on three Issues. The remaining three Issues will be discussed further at a future meeting.
Dataline / In depthDataline: New fair value measurement standard -- Implementation guidance for new disclosure requirements (No. 2012-02)
2/27/12 | Assurance services
In May 2011, the FASB issued Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (the ASU). The ASU resulted from a joint project with the International Accounting Standards Board (IASB). The IASB also issued IFRS 13, Fair Value Measurement, in May 2011. Many of the changes to existing fair value measurement guidance represent clarifications and are intended to align U.S. GAAP and IFRS. However, certain of the amendments to U.S. GAAP are substantive and several new disclosures are required. This Dataline includes a series of questions and answers providing implementation guidance on selected new disclosure...
Dataline / In depthDataline: Accounting for derivative instruments -- Treasury and financial reporting implications of using an OIS (not LIBOR) curve in the valuation of certain derivatives (No. 2011-30)
10/27/11 | Assurance services
Methodologies utilized to value derivative instruments continue to evolve, even for "plain vanilla" products. Some derivatives dealers have begun exploring valuing certain derivatives using an overnight index swap ("OIS") curve to discount the cash flows, rather than the LIBOR swap curve that has been used in the past. Derivatives to be valued using the OIS curve include collateralized derivatives and derivatives cleared through a central clearing house. This new method of valuation is the latest in a series of changes in recent years, which if implemented will result in changes for derivatives dealers across all aspects of their organizations and also for the counterparties to these trades. This Dataline addresses...
Dataline / In depthDataline: New fair value measurement standard -- Implementation guidance for key changes to the measurement of financial instruments at fair value (revised March 1, 2012*) (No. 2011-31)
10/27/11 | Assurance services
In May 2011, the FASB issued ASU 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. Many of the changes to existing fair value measurement guidance represent clarifications and are intended to align U.S. GAAP and IFRS. However, certain of the amendments to U.S. GAAP are substantive and require analysis of current practice. This Dataline provides implementation guidance on certain aspects of the ASU, specifically regarding the fair value measurement of financial instruments, including (1) the application of premiums and discounts, (2) measuring the fair value of financial instruments with offsetting market and credit risks, and (3) the...
M&A snapshotMarket participants: how their views impact your values (M&A snapshot)
9/26/11 | Assurance services
In a business combination, buyers are required to record the acquired assets and assumed liabilities of a business at their fair values. Fair value reflects the price that market participants would receive to sell an asset or pay to transfer a liability. Assets and liabilities may be used differently by different market participants, resulting in variations in values. Therefore, a market participant's view is an important aspect of the valuation process as a buyer cannot look only to its own intended use of an asset or its ability to transfer a liability at a certain price. This publication provides insight on the identification of market participants, as well as how entities can develop market participant assumptions.
Dataline / In depthDataline: Financial reporting considerations stemming from an uncertain global economy -- Accounting and reporting observations (No. 2011-27)
9/15/11 | Assurance services
In recent months, capital markets and currency exchanges have experienced significant volatility. The downgrade of long-term U.S. Treasuries, the European debt crisis, and slowing gross domestic product (GDP) growth in the world's leading economies have contributed to an uncertain global economy. Companies should consider the impact of the changing economic environment on their accounting and financial reporting and monitor areas of their business that might be affected by an economic slowdown. This Dataline discusses the key areas of financial reporting that could be impacted by a broader economic slowdown.
Dataline / In depthDataline: Fair value measurement -- FASB and IASB complete joint project (No. 2011-23)
6/9/11 | Assurance services
In May 2011, the FASB and IASB completed their joint project on fair value measurement and issued their respective final standards. The joint project was part of the Memorandum of Understanding between the FASB and IASB. The objective of the project was to bring together as closely as possible the fair value measurement and disclosure guidance issued by the two boards. The issuance of the final standards results in global fair value measurement and disclosure guidance and minimizes differences between U.S. GAAP and IFRS. This PwC Dataline describes the key changes to U.S. GAAP as well as other notable clarifying guidance included in the FASB's final standard. It also highlights key differences that will remain between U.S. GAAP and IFRS.