Tina Catalina, Director, Assurance Services, Quoted in Compliance Week Article "Companies Laboring to Make Sense of New Fair-Value Rules"
By Tammy Whitehouse
With the first-quarter close rapidly approaching, companies and their auditors are still trying to determine how they will comply with a new rule that adjusts the method for measuring fair value and requires significant new disclosures.
Companies became accustomed to applying “block discounts” on groups of securities, or securities valued in a block, says Tina Catalina, director of the alternative investment group for audit firm Marcum. “Now the literature says you can’t take block discounts on any securities,” she says. “At Level 1, it was always prohibited. Now at Level 2 and Level 3, you have to look at this differently.”