FAS 107 requires most entities to disclose the fair value of financial instruments (cash, evidence of an ownership in an entity, or a contractual obligation/right) recognized and not recognized in the statement of financial position. The entity should value both assets and liabilities. The fair value is to be disclosed for those items in which it is practicable to estimate fair value, and for those items where it is not practicable, additional descriptive information must be disclosed for estimating the value.
We offer two options for a FAS 107 fair value analysis. Either option allows you to efficiently and cost-effectively fill your year-end reporting requirements.
The first method values balance sheet items according to re-pricing and/or maturity cash flow intervals (buckets) and the yields and costs associated with those intervals. The second option values select balance sheet items individually and is considered a more robust method for calculating fair market values.
To perform this analysis, R2Metrics has developed standardized excel templates to be populated with information gathered in normal quarter-end A\L processes.