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DerivActiv Provides FAS 157 Services & Valuation AdjustmentsDerivActiv is a leading provider of non-performance adjusted valuations on derivatives and other financial instruments for FAS 157 compliance (which is also called Topic 820).WHAT IS FAS 157?FAS 157 is the Financial Accounting Standards Statement No. 157 Fair Value Measurement; an accounting disclosure and valuation requirement implemented in 2008 by the Financial Accounting Standards Board (FASB). At its heart, FAS 157 redefines the "fair value" accounting of financial instruments as, ". . . the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date."While the Statement is complex, the intention is to increase consistency and comparability among fair value estimates used in financial reporting. Under FAS 157, the fair value of the asset or liability is equal to the exit price, not necessarily the value on the mark to market statement from the financial institution providing the statement. DerivActiv adjusts periodic mark to market values to incorporate nonperformance risk as required under FAS 157. Our team will analyze the underlying instrument and determine the methodology to be used to adjust the market value for non-performance risk. We will work closely with your auditing firm to verify that the asset or liability is classified correctly (level 1, 2 or 3) and to confirm that the methodology is consistent with the current practice for similar entities. DerivActiv is uniquely positioned to help your organization comply with FASB Statement 157 fair value accounting standards related to financial assets and liabilities. FAS 157 DETAILS, ISSUES EXPLAINEDThere are many points and details to the 85-page FAS 157 accounting standard. To help you better understand FAS 157 (now called Topic 820), we have produced an audio podcast episode in which MuniMarket Pulse interviews Travis Quast, Vice President of DerivActiv, an authority on the subject. Listen here to understand which entities are subject to the new standards and when; the "unintended consequences" of the new standard with respect to FAS 133; and how FAS157 may increase volatility in financial statements.
LISTEN TO MUNIMARKET PULSE™ DerivActiv is a leading provider of mid-market valuations on derivatives and other financial instruments for FAS 157 compliance and can assist with fair value accounting requirements. For more information, call us at 866-200-9012 or click here to request a free demonstration |
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FAS 157 Accounting FAS 157 Application FAS 157 Definition of Fair Value FAS 157 Derivatives FAS 157 Disclosure FAS 157 Disclosure Examples FAS 157 Effective Date FAS 157 Guidance FAS 157 Implementation FAS 157 Level 1 FAS 157 Mark to Market Accounting FAS 157 Private Equity |
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