SingerLewak

In order to deal with numerous questions related to application of ASU Subtopic 820 (Fair Value)

to liabilities, the FASB released its newest Accounting Standards Update (ASU) No, 2009-05

which amends Subtopic 820-10-35 to provide guidance on the measurement of a liability at

fair value.

The guidance states that a quoted price in an active market for an identical liability is deemed to

represent a Level 1 measurement.  Absent a quoted price, fair value should be measured using

one of the following valuation methods:

             1.)  The quoted price of an identical liability traded as an asset

             2.)  The quoted price for similar liabilities

             3.)  A valuation technique consistent with an income approach using a present

                    value technique or a market approach

If applicable, inactive market guidance applies to liabilities as well as assets.

If fair value is measured using the price of the liability traded as an asset, the price should not be

adusted for the effect of a restriction on a sale, but should be adjusted for factors specific to the

asset that are not applicable to the fair value of the liability.

If a valuation technique is used to measure fair value, it must reflect the assumptions that

market participants would use (which could be the reporting entity's own assumptions that market

participants would take into account) in pricing the liability in its principal or most advantageous

market.

For more information, please contact Jim Pitrat at jpitrat@singerlewak.com