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Fair Value Accounting: Insights and Issues
Fair value accounting ' sometimes used interchangeably with mark-to-market accounting ' has been criticized in some quarters as being the main cause of the current credit market turmoil. Proponents of this viewpoint contend that accounting rules were interpreted to mean that entities were required to value certain assets and liabilities, particularly marketable securities (e.g., mortgage-backed securities), at market values despite the fact that those values were established by distressed or fire-sale transactions. Such valuations, these proponents argue, resulted in these securities being written down inappropriately in financial statements significantly below their intrinsic values thereby overstating the losses incurred. These write-downs severely eroded capital in financial services companies, thus curtailing their ability to operate and lend.
To establish context, entities, particularly financial institutions, have recognized significant losses in their financial statements in 2007 and 2008 with respect to fair value write-downs. One estimate put the cumulative losses incurred by financial institutions through the third quarter of 2008 at an amount in excess of $600 billion.
The accounting standard that has been the center of the debate over fair value accounting is Statement of Financial Accounting Standards No. 157 (“SFAS 157″), Fair Value Measurements. SFAS 157 defines fair value and establishes a framework for measuring the fair value of assets and liabilities under different market conditions, both active and inactive. It also discusses the disclosure requirements for fair value measurements. Additionally, the Securities and Exchange Commission (“SEC”) and the Financial Accounting Standards Board (“FASB”) have issued guidance and clarifications, more so lately, about its applicability.
Yachts, Jets, Horses & Hooch: Specialized Commercial Leasing Models
Defining commercial real estate asset class is essentially a property explaining how it identifies — not necessarily what its original intention was or what others think it ought to be. This article discusses, from a general issue-spot and contextual analysis perspective, how lawyers ought to think about specialized leasing formats and the regulatory backdrops that may inform what the documentation needs to contain for compliance purposes.
Hyperlinked Documents: The Latest e-Discovery Challenge
As courts and discovery experts debate whether hyperlinked content should be treated the same as traditional attachments, legal practitioners are grappling with the technical and legal complexities of collecting, analyzing and reviewing these documents in real-world cases.
Identifying Your Practice's Differentiator
How to Convey Your Merits In a Way That Earns Trust, Clients and Distinctions Just as no two individuals have the exact same face, no two lawyers practice in their respective fields or serve clients in the exact same way. Think of this as a "Unique Value Proposition." Internal consideration about what you uniquely bring to your clients, colleagues, firm and industry can provide untold benefits for your law practice.
Risks and Ad Fraud Protection In Digital Advertising
The ever-evolving digital marketing landscape, coupled with the industry-wide adoption of programmatic advertising, poses a significant threat to the effectiveness and integrity of digital advertising campaigns. This article explores various risks to digital advertising from pixel stuffing and ad stacking to domain spoofing and bots. It will also explore what should be done to ensure ad fraud protection and improve effectiveness.
Turning Business Development Plans Into Reality
This article offers practical insights and best practices to navigate the path from roadmap to rainmaking, ensuring your business development efforts are not just sporadic bursts of activity, but an integrated part of your daily success.