FASB changes mark-to-market -- what about intangibles?

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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.

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TrackBack URL: http://www.athenaalliance.org/mt/mt-tb.cgi/2545

Here is a great juxtaposition, from yesterday's Wall Street Journal: Story #1 Regulators Agree to Create Stricter Capital Requirements for Banks:A group of U.S. and foreign bank regulators has agreed to move towards creating stricter capital requiremen... Read More

A widely recognized issue with the management and financial recognition of intangibles is valuation. Not only does the nature of some intangibles make valuation problematic (e.g. worker tacit knowledge) but when intangible are traded (e.g. patents) the... Read More

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This page contains a single entry by Ken Jarboe published on April 2, 2009 5:30 PM.

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