Dataline: New fair value measurement standard -- Adoption of the new guidance: First quarter 2012 measurement and disclosure observations (No. 2012-05)

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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 primarily clarifies existing fair value measurement guidance and is intended to align U.S. GAAP and IFRS. Additionally, the guidance requires several new disclosures.

The guidance was effective for interim and annual periods beginning after December 15, 2011 for public companies and for annual periods beginning after December 15, 2011 for nonpublic entities. For most public companies, the quarter ended March 31, 2012 was the first period the guidance in the ASU was effective.

This Dataline provides observations on how the guidance was implemented by a sample of 37 companies to identify 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.