Earlier today, FASB announced that it was modifying the mark-to-market rules. Final guidance will come out in a week or so. (You can also listen to the announcement on line.) According to Bloomberg, "Changes to fair-value, or mark-to-market accounting, approved by FASB today allow companies to use 'significant' judgment in gauging prices of some investments on their books, including mortgage-backed securities."
If banks can now use "significant" judgment and internal valuation models for financial assets, why can't companies use significant judgment and internal valuation models for all intangibles?
Now, FASB will require greater disclosure of valuation methods and on cost data. That is good news. But, again, what about the valuation methods of their intangibles, such as for their patents?
Seems to me if you can do one, you should be able to do the other.



Leave a comment