By Linda Cavanaugh, CPA - FAS 157 "Fair Value Measurements" became effective on January 1, 2008 and will need to be included in the footnotes of the 1st Qtr 10Qs for the March 31, 2008 close.
There has been some good news. The FASB issued two FSPs to help us out. FSP157-1 excludes leasing transactions from the scope of FAS 157. However, assets and liabilities realted to leases that are assumed in a business combination are not excluded from the requirements of FAS 157. In other words, you have to fair value the lease for its share of the value in the business combination, but you would apply the fair value rules in FAS 13 "Leases" to determine the residual value and such.
FSP157-2 delays the effective date of FAS 157 for nonfinancial assets and nonfinancial liabilities that are recognized or disclosed on a non-recurring basis. Applying fair value measurements to these assets and liabilities is pushed back a year to financial periods beginning after November 15, 2008. The deferral includes such items as: impairment tests of goodwill and intangible assets and impairment tests of long-lived assets. It also applies to asset retirement obligations and nonfinancial liabilities for exit or disposal activities under FAS 146.
This deferral does not include items within the scope of FAS 159 "Fair Value Option, Fas 107 "Disclosures and Fair Value of Financial Instruments, FAS 133 "Accounting for Derivative Instruments and Hedging Activities, and FAS 156 "Accounting for Servicing of Financial Assets.
So we get a little break, but not much. Hopefully you have already written a draft disclosure and had several people look at it. Good Luck as we head into Q1 reporting time.