October 2007 Articles
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Cooley explains the 409A compliance delay
Law firm Cooley Godward Kronish released a short article tonight that explains the "transition relief" offered by the IRS with respect to 409A compliance. It is a reminder how much of 409A is outside the realm of valuation. In fact, darn near all of it. I was surprised when a...
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This just about sums it up
There's plenty of confusion out there. But it's starting to get easier as the various constituencies are absorbing industry best practices. It used to take me all of an hour to describe how the industry has been turned on its head by Fair Value accounting, and (more importantly) what to...
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Auctioning Options
David Reilly appeared on C2 of the WSJ today with an article on the SEC's final clearance for Zions Bancorp to use an auction process to value employee stock options. It's a novel approach that Zions will presumably take to market. Potentially a nice option for publicly traded companies to...
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The FAS 157 Train: an analogy that won’t stop
Catching up on some overdue summer reading, I picked up the June issue of the Venture Capital Journal (VCJ) to read about the latest from Tuck’s Center for Private Equity and Entrepreneurship. Some interesting trends jump out of a survey recently conducted by professors Blaydon and Wainwright, which are confirmed...
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Unité, Clarité, Fraternité?
David Reilly is on a FAS 157 tear. Appearing on the right column of C1 in yesterday’s Wall Street Journal, Mr. Reilly penned an article about the newly formed Center for Audit Quality, an industry group that has “emerged as the voice of the Big Four.” It’s a nice quick...
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FASB votes not to delay FAS 157
During today's open meeting of the Financial Accounting Standards Board, the members discussed the application of FASB Statement No. 157, Fair Value Measurements and considered deferring the current effective date. My partner Alex Hodgkin, who is in Connecticut today at the quarterly Appraisal Issues Task Force meeting, received word that...
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2. Purchase price allocations: a primer on SFAS 141
A Quick explanation of SFAS 141: Business Combinations If you've been through an M&A transaction in the past few years, you've experienced the need for a purchase price allocation to stay in compliance with Generally Accepted Accounting Principles (GAAP) according to SFAS 141. SFAS 141 is that new-ish accounting rule...
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