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Fair Value Disclosures: New disclosures for level 3 fair value measurements were effective Q1 2012. The disclosures were more complex and operationally intensive than originally expected by most preparers. In addition, the information provided may not always be conducive to an investor’s understanding of the unobservable inputs used in these measurements. This webcast would provide insight on the FASB’s requirements, a comparison/review of disclosures in companies’ SEC filings, SEC’s views on what should be disclosed, auditors’ concerns, and the current thinking on how this disclosure is expected to evolve.

Course Level: Intermediate
Prerequisite: None
Method Of Presentation: Group-Based-Internet
Developer: The Knowledge Group, LLC
Recommended CLE/CPE Hours: 1.75 - 2.0
Advance Preparation: Print and review course materials
Course Code: 124398
Recording Fee: $299 (Please click here for details)

 

Featured Speakers for New FASB Fair Value Disclosure Requirements (ASU 2011-04) LIVE Webcast :


Agenda  (click here to view more)


SEGMENT 1 & 8:
Anthony B. Creamer III, CPA, Managing Director,
Navigant

  • • Recent SEC Enforcement Actions and Initiatives Focused on Fair Value
  • • PCAOB Reports and Comments on FV and Impact of Reporting Entities (and Their Auditors)
  • • Role of the Board in Evaluating FV and Related Disclosures along with some suggested Best Practices


SEGMENT 2:
Ralph M. Natilli, CPA, Principal,
Rothstein Kass

  • • New disclosure requirements for level 3 measurements (this can be broken down into 3 taking points as follows):
    • i. Quantitative disclosures of unobservable inputs
    • ii. Description of valuation processes
    • iii. Qualitative discussion of sensitivity to changes in unobservable inputs (public entities only)
  • • New disclosure requirements for level transfers


SEGMENT 3:
Lou Fanzini, Director of Accounting Policy,
AIG

  • • Determination of asset classes
  • • Ability to aggregate data for footnote disclosure
  • • Robustness of valuation processes
  • • Visibility behind pricing vendor prices (methodologies and data inputs)
  • • Process to analyze input levels for vendor or custodian pricing
  • • Process to capture valuation technique changes
  • • Process to qualitatively access sensitivity of inputs
  • • Auditor view of reasonably availables


SEGMENT 4:
Christopher Esposito, Partner,
Deloitte & Touche LLP

  • • Most public companies adopted ASU 2011-04’s1 amendments to the fair value measurement and disclosure requirements in ASC 8202 during the first quarter of 2012.
  • • Deloitte looked at 30 SEC filings from entities in several financial services industry (FSI) sectors to see how financial services companies implemented the ASU.
  • • Most companies from our sample disclosed that the adoption of ASU 2011-04 did not materially affect their financial position or results of operations, indicating that the ASU had little effect on measurement practices.
  • • The ASU’s amendments to the fair value disclosure requirements in U.S. GAAP were more significant.
  • • Although some entities applied the new disclosure requirements similarly, we observed diversity in practice.
  • • For example, the entities in our sample provided different types of quantitative information about significant unobservable inputs in Level 3 measurements (e.g., a range, weighted average, neither, or both), but many excluded information, taking advantage of the exemption from this requirement for significant unobservable inputs developed by third parties


SEGMENT 5:
Jon Waterman, CPA, Partner,
McGladrey LLP

  • • Level of aggregation (or disaggregation)
  • • Sensitivity analysis
  • • Differences in disclosures that public companies have implemented


SEGMENT 6:
James W. Kaiser, CPA , Partner ,
BBD, LLP

FASB Requirements
  • 1. ASU 2011-04 states that it is effective for annual and interim periods beginning after 12/15/11. For an 11/30 year end Fund, their annual period began 12/1/11, so is any disclosure necessary since the annual period began before 12/15/11? (SD)
    • 1. Some audit firms are telling clients that yes disclosure is necessary but for an interim period.
    • 2. How beneficial is that information since it is only for an interim period and not a full year?
  • 2. ASU does not allow the use of blockage discounts, but clearly does not restrict the application of other discounts in valuation. Discuss and explain unit of measure concept.
The current thinking on how this disclosure is expected to evolve
  • 1. Old thinking was to default to level three when inputs to pricing became more opaque. (CRS)
    • 1. As management is presented with disclosing the inputs to their valuations, it is possible that previously considered level three assets will be considered as level 2
    • 2. Disclosure should evolve to allow the readers of the financial statements to better understand how changes in market conditions could affect the Fund’s investments
      • 1. Current disclosures surrounding fair value levels may come up a bit short. Simply calling an investment a level three asset carries some weight, but to describe that changes in interest rates, for instance, could impact the value (and performance) of the investment
  • 2. Focus on the reader -providing more insight into management's methodology of determining FS disclosures; i.e. the narrative about fair value measurements and sensitivity analysis in the hopes of providing the reader with a clearer picture of how management comes to value such securities (JMD)
Views on what should be disclosed
  • 1. Consideration for breaking down the investment types further, i.e. Bonds -> Corporate, High Yield, Foreign, etc. to better align the inputs to fair valuation levels to relevant ranges (CRS)
  • 2. If the range of broker prices provided in the table for level 3 securities is so wide, how meaningful is the information in that specific column. Should there be a footnote explaining why the range is so wide? (SD)
  • 3. What disclosures are required when a prior transaction price is used in a Level 3 measurement?
  • 4. What disclosures are required when the practical expedient is used to value investments in unregistered investment partnerships.


SEGMENT 7:
Josette Ferrer , Managing Director,
Clairent Advisors LL

  • • Review of relevant comments from this month’s 2012 AICPA Conference on SEC/PCAOB developments – including guidance from Mark Shannon (Associate Chief Accountant, SEC’s Division of Corporate Finance). He had noted that the SEC staff has focused specifically on three topics related to fair value disclosure under ASU 2011-04 which I can discuss further:
    • - Quantitative information about significant unobservable inputs used in Level 3 measurements
    • - Disclosing the use of multiple valuation techniques for a class of assets or liabilities
    • - Greater granularity of qualitative sensitivity disclosures
  • • Review of one or two illustrative examples of recent SEC comment letters covering certain referenced aspects above


Navigant
Anthony B. Creamer III, CPA
Managing Director
speaker bio »»

Rothstein Kass
Ralph M. Natilli, CPA
Principal
speaker bio »»

AIG
Lou Fanzini
Director of Accounting Policy
speaker bio »»

Deloitte & Touche LLP
Christopher Esposito
Partner
speaker bio »»

McGladrey LLP
Jon Waterman, CPA
Partner
speaker bio »»

BBD, LLP
James W. Kaiser, CPA
Partner
speaker bio »»

Clairent Advisors LLC
Josette Ferrer
Managing Director
speaker bio »»



Who Should Attend?

- Preparers and users/analysts
- CPAs
- Valuation Analysts
- Finance Directors
- Auditors
- And other interested professionals

Why Attend?

This is must attend event for anyone interested in learning the up-to-date issues related to the new FASB Fair Value Disclosure Requirements (ASU 2011-04)

- New guidance explained by the most qualified key leaders & experts
- Hear directly from experienced practitioners & thought leaders
- Interact directly with panel during Q&A

Enroll in this course today by clicking the Register button below. Hurry as space is limited and deep discounts apply for early registrants.

Registration Information:                                                                                                                                    


(Click here for information on group registrations and discounts)

Disclaimer:
Please note, the event date is firm although it may be subject to change. Please click here for details.
The Knowledge Group, LLC is producing this event for information purposes only. We do not intend to provide or offer business advice. The contents of this event are based upon the opinions of our speakers. The Knowledge Congress does not warrant their accuracy and completeness. The statements made by them are based on their independent opinions and does not necessarily reflect that of The Knowledge Congress' views. In no event shall The Knowledge Congress be liable to any person or business entity for any special, direct, indirect, punitive, incidental or consequential damages as a result of any information gathered from this webcast.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


New FASB Fair Value Disclosure Requirements (ASU 2011-04)
LIVE Webcast
Speakers and Partner Firms:




Navigant is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in disputes and investigations, economics, financial advisory and management consulting with business pragmatism, supporting clients in addressing their most critical business leads.




Rothstein Kass provides audit, tax, accounting and advisory services to hedge funds, funds of funds, private equity funds, broker-dealers and registered investment advisors. The firm is recognized internationally as a top service provider to the industry through its Financial Services Group. The Financial Services Group consults on a wide range of organizational, operational and regulatory issues. The firm also advises on fund structure, both inside and outside the United States, compliance and financial reporting, as well as tax issues from a federal, state, local and international compliance perspective. Rothstein Kass has offices in Boston, California, Colorado, Massachusetts, New Jersey, New York, Texas and the Cayman Islands.


AIG




“Deloitte” is the brand under which tens of thousands of dedicated professionals in independent firms throughout the world collaborate to provide audit, consulting, financial advisory, risk management and tax services to selected clients. These firms are members of Deloitte Touche Tohmatsu Limited (DTTL), a UK private company limited by guarantee. Each member firm provides services in a particular geographic area and is subject to the laws and professional regulations of the particular country or countries in which it operates. DTTL does not itself provide services to clients. DTTL and each DTTL member firm are separate and distinct legal entities, which cannot obligate each other. DTTL and each DTTL member firm are liable only for their own acts or omissions and not those of each other. Each DTTL member firm is structured differently in accordance with national laws, regulations, customary practice, and other factors, and may secure the provision of professional services in its territory through subsidiaries, affiliates and/or other entities.




McGladrey LLP is the fifth largest U.S. provider of assurance, tax and consulting services, with nearly 6,500 professionals and associates in more than 70 offices nationwide. McGladrey is a licensed CPA firm.

It is the U.S. member of RSM International (“RSMI”), the sixth largest network of independent accounting, tax and consulting firms worldwide, with offices in more than 85 countries and more than 32,000 people to serve clients’ business needs. The member firms of RSMI collaborate to provide services to global clients, but are separate and distinct legal entities which cannot obligate each other. Each member firm is responsible only for its own acts and omissions, and not those of any other party.




BBD, LLP is a nationally recognized, PCAOB-registered firm of Certified Public Accountants located in Philadelphia. The firm specializes in providing services for the investment management industry.

BBD’s Investment Management Group provides audit and tax services for registered and unregistered investment companies, investment advisors and securities broker/dealers. Our affiliate, BBD Cayman, provides audit services for offshore hedge funds based in the Cayman Islands.

The Investment Management Group maintains a blog, investmentcompanynotebook.com, providing insight and analysis on the audit and tax issues impacting investment companies. BBD’s investment company expertise also is sought out regularly by the nation’s premier financial media. In the past several months, BBD has commented in Money Management Executive, Ignites, Fund Director Intelligence, and Onwallstreet.




Clairent Advisors specializes in providing independent asset and business valuations – combining proven techniques, analytical tools, and extensive experience to produce thorough and well-documented deliverables. Clairent’s team has significant experience providing valuations and financial advisory services for a variety of needs, including, but not limited to: financial reporting, tax planning and reporting, mergers and acquisitions, corporate reorganization and bankruptcy, and litigation support. Clients have valued Clairent’s credentials – with experience on over 600 significant valuation engagements – coupled with the responsiveness and focus from senior level team members on all aspects of a project. Serving both U.S. as well as international clients, Clairent is based in San Francisco, California.




 

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