Rothstein Kass Issues New White Paper on Fair Value Accounting

ROSELAND, N.J., Jan. 18, 2011 /PRNewswire/ -- International professional services firm Rothstein Kass (www.rkco.com) today announced that the company has published a new reference manual pertaining to Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures (ASC 820). "ASC 820 – Fair Value Measurements and Disclosures: Best Practices for Implementation and Compliance for the Alternative Investment Industry," is currently available online. The guide includes sample financial statement footnotes, a matrix of valuation level designation and investment types, and a frequently asked questions section.

"For the past several years, reconciling disparate conceptions of fair value accounting practices under U.S. GAAP has been among FASB's stated objectives. This imperative was only reinforced by recent economic events. In the aftermath of the crisis, some investment management companies were beset by a spate of redemption requests from anxious investors. Those with disproportionate concentrations of illiquid holdings were often compelled to sell profitable equity holdings to meet liquidity demands," said Chris Mears, Principal-in-Charge of the Rothstein Kass New York Metro Financial Services Group. "Promoting uniform disclosures will enhance transparency and help investors to fully understand the range of investment options available and make appropriate allocations. At the same time, investment managers will have greater certainty that they are raising capital from investors with liquidity profiles and investment horizons that are aligned with long-term fund objectives."

"An exceptionally active regulatory agenda has deflected some of the financial services industry focus away from fair value accounting standards even as FASB has continued to sharpen its guidance. As a leading service provider to the alternative investment community – including hedge funds, private equity companies and venture capital firms – Rothstein Kass regularly publishes reports, research and analysis intended to help our clients keep pace with innovation," said Howard Altman, Co-CEO and Principal-in-Charge of the Rothstein Kass Financial Services Group. "We are quite proud of our latest effort, that draws on the collective knowledge and insights of the Rothstein Kass Financial Services and Quality Control Groups. It is clear that fair value measurement remains an art, not a science. However, ASC 820 offers a framework for consistency and comparability that will support the implementation of institutional-quality best practices."

About Rothstein Kass:

Rothstein Kass is a premier professional services firm that has served privately held and publicly traded companies, individuals, and families for more than 50 years. Rothstein Kass is consistently ranked as a top CPA firm to the alternative investment industry in independent, third-party surveys. The Rothstein Kass Financial Services Group provides services to many high-profile and respected clients including hedge funds, fund of funds, private equity and venture capital funds.

SOURCE Rothstein Kass