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The Financial Accounting Standards Board’s Statement of Financial Accounting Standards No. 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.
Interactive Data has been discussing FAS 157 with clients and independent accounting firms and developing informational resources for clients to assist them with their preparations for FAS 157. We conducted an internal project to review and categorize the inputs we use for each subset of evaluations we prepare. Information about inputs to our evaluations, and about valuations we receive from third parties, is set forth in our Summary of Inputs by Asset Class. This enhanced transparency will provide our clients with information for their determinations under a “bucketed approach” of input levels for securities we evaluate. Interactive Data will provide the Summary of Inputs to clients upon request, and we are, of course, also available to answer questions about the information in the Summary.
To obtain a copy of our FAS 157 Position Paper, please click here.
To request a copy of our Summary of Inputs by Asset Class, or to contact someone for more information about Interactive Data and FAS 157, please click here.
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