Real Estate Blog - Do you agree with the FASB ruling on Determining Fair Value?

The FASB ruling amplifies a statement it released with the Securities and Exchange Commission on Sept. 30, with examples of how companies should use their best judgment to value assets that have no active market.

"Determining fair value in a dislocated market depends on the facts and circumstances and may require the use of significant judgment about whether individual transactions are forced liquidations or distressed sales," Friday's FASB statement said.

"In determining fair value for a financial asset, the use of a reporting entity's own assumptions about future cash flows and appropriately risk-adjusted discount rates is acceptable when relevant observable inputs are not available," it said.

To Read full FASB position statement click here.

Not sure if this is what this market needs to restore trust? Thoughts?

Stephen A. Cunningham; MAI, CCIM

Managing Director

Email:	scunningham@landqwestcommercial.com
Office Phone:	239-275-4922 ext. 225
Fax:	239-275-4699
Mobile Phone:	239-910-4085

Posted by Stephen A. Cunningham; MAI, CCIM on 10/12/2008 02:45 PM

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