FEI Committee On Private Cos. Comments On FASB Fair Value Proposal
March 3, 2009
FEI Summary
On March 3, 2009 FEI's Committee on Private Companies Standards Subcommittee filed a comment letter on the Financial Accounting Standards Board's proposed FASB Staff Position (FSP) No. FAS 107-b and APB 28-a, Interim Disclosures about Fair Value of Financial Instruments.
The letter, signed by William Koch, chair of FEI's Committee on Private Companies Standards Subcommitee, requests that private companies be exempted from the proposal, due to a lack of user demand for the proposed disclosures from private companies, and the burden of providing the disclosures.
Additionally, the letter states that that if FASB does not exempt private companies from the proposal, that FASB amend the current exemption language in FAS 126, Exemption from Certain Required Disclosures about Financial Instruments for Certain Nonpublic Entities—an amendment to FASB Statement No. 107, to reference only a total assets threshold, without regard to whether or not a nonpublic entity has derivatives.
The letter also requests an extension of the proposed effective date. Read more in the comment letter.
Prepared March 3, 2009 by Edith Orenstein, director, Accounting Policy Analysis, Financial Executives International. This summary does not represent FEI opinion unless specifically noted above.