Some key takeaways from the ASA/USC fair value conference

There was a full house at the recent ASA/USC 11th Annual Fair Value Conference in Los Angeles. BVWire was there, and here are a few takeaways from some of the sessions, all of which were excellent.

  • Comments are due June 24 on two exposure drafts related to the new fair value credential, Anthony Aaron (E&Y) reminded the audience (see the BVWire for more details). Aaron is the chair of the performance requirements workstream group for the Fair Value Quality Initiative designed to strengthen fair value in financial reporting.
  • When valuing a financial instrument, consider its principal market, advises Kristopher Shirley (SEC), who says the agency sees problems in this area. He says that, if you identify a market but can’t access it, you can’t rely on it for the valuation, but you can use it as an input.
  • The FASB will soon issue an invitation to comment about internally generated intangible assets, says Adam Kamhi (FASB), to determine whether this should be added to the FASB’s rule-making agenda (current rules don’t allow recognition on the balance sheet).
  • A proposed guide on valuing contingent consideration will be out in a “few months,” says Alok Mahajan (KPMG), chair of the working group under The Appraisal Foundation.
More coverage of the conference will be in the August issue of Business Valuation Update.