Pluris Valuation Advisors’ Accounting Alerts are published on an irregular schedule, whenever changes are made to accounting standards regarding fair value, or as necessary to alert our financial reporting or portfolio valuation clients to emerging fair value accounting issues.
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August, 19 2014
The use of tranched preferred share issuances (TPSIs), in which a company issues preferred shares and provides for the issuance of an additional tranche or tranches of preferred shares after… more
June, 12 2013
The FASB is expected to take action soon on an accounting standards update (ASU) that represents a complete overhaul of the recognition, measurement and presentation of financial instruments, such as… more
February, 23 2012
New amendments that take effect in fiscal years beginning after Dec. 15, 2011 will make fair value standards more restrictive for public companies. Major changes include the elimination of the… more
February, 2 2012
The Impact of Convertibles and Detachables on Earnings Per Share Issuing equity-linked financial instruments, such as convertible debt or warrants, can have an unexpected impact on earnings per share (EPS).… more
December, 29 2011
Background The IASB recently published an Exposure Draft (ED), Investment Entities, proposing an exception to the IFRS principle that a reporting entity must consolidate all controlled entities. The ED proposes… more
August, 24 2011
The SEC, FASB and IASB have been busy converging U.S. GAAP with IFRS: In May, the SEC released a work plan for how a transition to IFRS might work, introducing… more
August, 16 2011
On July 7, the SEC sponsored an IFRS roundtable to discuss the impact of adopting IFRS in the U.S. The FASB and the IASB are committed to substantial convergence by… more
June, 13 2011
The Congressional Budget Office (CBO) is on a roll to promote fair value accounting. The federal agency that provides economic data to Congress advised lawmakers in May that if they… more
May, 12 2011
This week, the FASB and the IASB released new fair value accounting measurement and disclosure guidance. The new guidance, set forth in IFRS 13, Fair Value Measurement and as an update to… more
May, 1 2011
Any public or private company with goodwill on its balance sheet will be affected if new goodwill impairment guidelines proposed by FASB on April 22, 2011 are enacted. Accounting Standards… more
November, 28 2010
Due in part to the credit crisis, the last big wave of acquisitions took place before 1/1/2009, when new accounting rules became effective under ASC 805 (FAS 141R). The next… more
November, 28 2010
Due in part to the credit crisis, the last big wave of acquisitions took place before 1/1/2009, when new accounting rules became effective under ASC 805 (FAS 141R). The next… more
October, 31 2010
Have you ever wondered why airlines don’t report airplanes on their balance sheets? This question has challenged accounting standard setters for years. Under current rules, each lease is categorized as… more
August, 16 2010
PIPE issuers and their advisors have long tried to avoid having to treat securities they’ve issued as derivatives. The task of individually valuing securities, and even embedded features within the… more
June, 2 2010
In its long awaited proposal issued last week, the FASB has expanded fair value accounting to nearly every financial asset. Companies have until September 30 to comment on the new… more
May, 19 2010
Not only did the FASB just expand the fair value option for securitized assets, but the Board added further pressure on reporting entities to use fair value. Entities that elect… more
April, 26 2010
We see a surprising number of companies that rely on the Black-Scholes-Merton (B-S) pricing model when pricing Private Investment in Public Equity (PIPE) securities – e.g., warrants or the conversion… more
March, 18 2010
There have been more exciting developments in the world of fair value accounting. The FASB’s tentative decisions would have a significant effect on fair value accounting affecting financial instruments across… more
February, 21 2010
At their joint meeting this past Thursday, February 18th, the FASB and IASB made new strides in improving fair value accounting. The Boards discussed fair value accounting for both financial… more
February, 3 2010
In our last Alert, we described how Down-round financings can trigger the late discovery of a derivative that was buried in a previous financing. To recap, if a company issues… more
January, 26 2010
In the latest amendment to ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), many new disclosure requirements will take effect. On January 21, 2010 the FASB issued Accounting Standards Update No. 2010-06,… more
October, 25 2009
Recently, we have seen companies execute financing deals for which the fair value accounting implications were not properly understood until after deal execution. Worse yet, we have seen situations in… more
September, 27 2009
In August 2009, the FASB issued ASU 2009-05, Measuring Liabilities at Fair Value (“ASU 2009-05”). ASU 2009-05 is the final rule from the recently proposed FSP FAS 157-f, Measuring Liabilities under FASB Statement… more
September, 13 2009
FAS 166, Accounting for Transfers of Financial Assets — an amendment of FASB Statement No. 140 (“FAS 166”), changes the accounting and reporting for transfers and servicing of financial assets and the… more
June, 29 2009
FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments (“FSP 115-2”), must be adopted now, in the second quarter. 115-2 introduces new guidance on measuring other-than-temporary impairment (“OTTI”) of debt… more
June, 11 2009
On April 9, 2009, the FASB released FASB Staff Position FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments (“FSP 115-2”), which amends current guidance on measuring other-than-temporary impairment (OTTI)… more
April, 13 2009
If you have assets or liabilities that are required or permitted to be reported at fair value, you will be affected by this new rule for your June 10-Q. Early… more
April, 8 2009
If your company was involved in a business combination event in the first quarter that involved the acquisition or assumption of certain assets and liabilities arising from contingencies, youwill be… more
March, 30 2009
FSP Gives Little Guidance, Hurts Companies That Have Been Diligent Proposed revisions to the “fair value” accounting standard (FAS 157) would weaken the standard and create inconsistencies in valuations, according… more
March, 19 2009
On March 17, 2009, the FASB issued two proposed FSPs: one on fair value measurements and the other on impairments of securities. Proposed FSP FAS 157-e, Determining Whether a Market Is… more