The Financial Accounting Standards Board (FASB) has issued FASB Staff Position (FSP) No. FAS 157-2, Effective Date of FASB Statement No. 157, to partially defer FASB Statement No. 157, Fair Value Measurements. This FSP defers the effective date of Statement No. 157for nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually), to fiscal years beginning after November 15, 2008, and interim periods within those fiscal years. Nonfinancial assets and nonfinancial liabilities include all assets and liabilities other than those meeting the definition of a financial asset or financial liability as defined in paragraph 6 of Statement No. 159, The Fair Value Option for Financial Assets and Financial Liabilities. Examples of items to which the deferral would apply include, but are not limited to:
- Nonfinancial assets and nonfinancial liabilities initially measured at fair value in a business combination or other new-basis event, but not measured at fair value in subsequent periods
- The following as described in Statement No. 142, Goodwill and Other Intangible Assets:
- Reporting units measured at fair value in the first step of a goodwill impairment test
- Nonfinancial assets and nonfinancial liabilities measured at fair value in the second step of a goodwill impairment test
- Indefinite-lived intangible assets measured at fair value for an impairment assessment
- Asset retirement obligations initially measured at fair value under Statement No. 143, Accounting for Asset Retirement Obligations
- Nonfinancial long-lived assets (asset groups) measured at fair value for an impairment assessment under Statement No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets
- Nonfinancial liabilities for exit or disposal activities initially measured at fair value under Statement No. 146, Accounting for Costs Associated with Exit or Disposal Activities
Examples of items to which the deferral would not apply include, but are not limited to:
- Items within the scope of paragraph 7 of Statement No. 159 that are recognized or disclosed at fair value on a recurring basis
- Items within the scope of Statement No. 107, Disclosures about Fair Value of Financial Instruments, whether recognized or not
- Financial and nonfinancial derivatives within the scope of Statement No. 133, Accounting for Derivative Instruments and Hedging Activities
- Servicing assets and servicing liabilities within the scope of Statement No. 156, Accounting for Servicing of Financial Assets, including situations in which an entity has elected the amortization method as the subsequent measurement attribute
- Loans measured for impairment using the practical expedient in Statement No. 114, Accounting by Creditors for Impairment of a Loan (based on the fair value of collateral if the loan is collateral dependent), even if the underlying collateral is nonfinancial
- Financial assets and financial liabilities initially measured at fair value in a business combination or other new basis event, regardless of whether measured at fair value during subsequent periods
This FSP does not apply to entities that have issued financial statements that included the adoption of Statement No. 157 in its entirety. Any entity that has early adopted Statement No. 157 may not reverse that adoption. Any entity that has not applied the provisions of Statement No. 157 in interim or annual financial statements is required to make certain financial statement disclosures until Statement No. 157 is applied to all assets and liabilities. Any entity that has not yet adopted Statement No. 157 is encouraged to carefully review each asset and each liability on its balance sheet to determine whether the proposed deferral would apply to each item.
The FSP is available in full at http://www.fasb.org/pdf/fsp_fas157-2.pdf. |
