PCAOB Issues Staff Audit Practice Alert On Fair Value Determinations And OTTI

On April 21, 2009, the Public Company Accounting Oversight Board ("PCAOB") issued a Staff Audit Practice Alert (the "Alert")¹ to inform auditors about the potential implications of three recently issued Financial Accounting Standards Board Staff Positions (the "FSPs"):

• FSP FAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly ("FSP FAS 157-4");
• FSP FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments ("FSP FAS 115-2"); and
• FSP FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments ("FSP FAS 107-1").