Interactive Data Helps Clients Prepare for FAS 157
Company Develops Informational Resources Designed to Provide Enhanced Transparency into Evaluation Inputs
9 October 2007 - Bedford, Mass.
Interactive Data Corporation (NYSE: IDC), a leading provider of financial market data, analytics and related services, today announced that its Pricing and Reference Data business has developed a set of informational resources designed to help clients prepare for the Financial Accounting Standards Board’s Statement of Financial Accounting Standards No. 157 (“FAS 157”).
FAS 157 will be mandatory for financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP) for fiscal years beginning after November 15, 2007. In order to comply with FAS 157, firms will need to understand the Financial Accounting Standards Board’s definition of fair value, develop procedures for fair value disclosures in their financial statements, and review their existing valuation policies and procedures. Additional information about FAS 157 is available on the Financial Accounting Standards Board’s website (http://www.fasb.org).
Firms that are subject to FAS 157 often make fair value determinations based on inputs received from third parties, including pricing/evaluation providers such as Interactive Data Pricing and Reference Data. Since FAS 157 was issued in September 2006, Interactive Data Pricing and Reference Data has been discussing the statement with its clients and independent accounting firms and has been developing informational resources for clients to assist them with their preparations for FAS 157.
The focus of this preparation has been helping clients to understand the inputs that Interactive Data Pricing and Reference Data utilizes in its evaluation services. Interactive Data Pricing and Reference Data conducted an internal project to review and specify the inputs for each subset of evaluations it prepares. This enhanced transparency should provide clients with sufficient information to make their own fair value hierarchy determinations as required under FAS 157.
“By taking a ‘bucketed approach’ of disclosing the types of inputs by asset class that we utilize to prepare evaluations, we can provide clients with critical information they need to comply with FAS 157,” said Liz Abela-Davi, senior director, global fixed income evaluations, Interactive Data Pricing and Reference Data. “We will continue to work closely with our clients and gather feedback about how we are disclosing our inputs, and we expect that our documentation will evolve based on client needs and new market developments.”
“Interactive Data believes that it is critical to work closely with clients and other firms in the financial services industry to better understand new regulations and standards, and the impact that they may have,” said Ray D’Arcy, president of sales and marketing, Interactive Data Corporation. “By providing a comprehensive set of informational resources that offer increased transparency into our evaluations process, we believe that we can help our clients effectively prepare for FAS 157.”
To request additional information about the inputs to Interactive Data Pricing and Reference Data’s evaluations and about valuations the Company receives from third parties, please visit: http://www.interactivedata-prd.com/FAS157.
About Interactive Data Corporation
Interactive Data Corporation (NYSE: IDC) is a leading global provider of financial market data, analytics and related services to financial institutions, active traders and individual investors. The Company's businesses supply time-sensitive pricing, evaluations and reference data for more than 3.5 million securities traded around the world, including hard-to-value instruments. Many of the world's best-known financial service and software companies subscribe to the Company's services in support of their trading, analysis, portfolio management and valuation activities. Through its businesses, Interactive Data Pricing and Reference Data, Interactive Data Real-Time Services, Interactive Data Fixed Income Analytics, and eSignal, the Company has approximately 2,200 employees in offices located throughout North America, Europe, Asia and Australia. The Company is headquartered in Bedford, Mass. Pearson plc (NYSE: PSO; LSE: PSON), an international media company, whose businesses include the Financial Times Group, Pearson Education, and the Penguin Group, is Interactive Data Corporation's majority stockholder.
Interactive Data Pricing and Reference Data provides global securities pricing, evaluations and reference data designed to support financial institutions’ and investment funds' pricing activities, securities operations, research and portfolio management. Interactive Data Pricing and Reference Data collects, edits, maintains and delivers data on more than 3.5 million securities, including daily evaluations for approximately 2.5 million fixed income and international equity issues. Interactive Data Pricing and Reference Data specializes in ‘hard-to-get’ information and evaluates many ‘hard-to value’ instruments.
Pricing, evaluations and reference data are provided in the US through Interactive Data Pricing and Reference Data, Inc. and internationally through Interactive Data (Europe) Ltd. and Interactive Data (Australia) Pty Ltd.
For more information about Interactive Data Corporation and its businesses, please visit www.interactivedata.com
Interactive Data and the Interactive Data logo are service marks of Interactive Data Corporation.
For More Information:
Investors
Andrew Kramer
Tel: +1 781-687-8306
Email: andrew.kramer@interactivedata.com
Media
Sue Mitchell (European media)
Tel: +44 (0)20 7825 8076
Email: sue.mitchell@interactivedata.com
John Coffey (US Media)
Tel: +1 781-687-8148
Email: john.coffey@interactivedata.com
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