FAS 161 Derivatives

DerivActiv, a leading provider of derivative management services including independent valuations, is positioned to assist entities and their auditors with FAS 161 compliance.

A DerivActiv FAS 161 Professional can be reached at 1-866-200-9012.

The purpose of FAS 161, and FASB’s goal, is for the new standard to provide greater transparency to investors, helping investors to better understand the risks companies assume through the use of derivative instruments as well as through their hedging activities.  It has been commonly believed in the investor community that the existing disclosure requirements contained in FAS 133, Accounting for Derivative Instruments and Hedging Activities, does not provide the needed transparency of risks associated with an entity’s derivative positions.

FAS 161 requires a tabular format for disclosing the current fair market value of derivative positions, as well as their gains and losses.  Additionally, it requires companies to provide more information about specific credit risk features in their derivative positions and to provide cross references so readers can quickly locate information about particular derivative positions that the company holds.

FAS 161 Reporting Dates

Fiscal Year End	Quarterly Filers	Semi-Annual Filers	Annual Filers
2/28, 5/31, 8/31 and 11/30	3/31/2009	6/30/2009	12/31/2009
3/31, 6/30, 9/30, and 12/31	240	140	50
1/31, 4/30, 7/31, and 10/31	4/30/2009	7/31/2009	1/31/2010

FAS 161 will have a significant impact on the way entities report and track their derivative instruments.