Clearwater Analytics to Convene Critical Briefing to Address FASB Deadline

BOISE, Idaho - (BUSINESS WIRE) - At the urging of its institutional clients, investment portfolio reporting specialist Clearwater Analytics will convene an executive briefing at 1 p.m. EDT tomorrow, June 25, 2009, to provide analysis of and education on the heavily debated pronouncement by the Financial Accounting Standards Board.

The briefing was prompted by the FASB's changes to its standards for mark-to-market accounting, that went into effect last week for reporting periods ending after June 15th, 2009-including a measure now compelling investors to re-evaluate their previously written down securities in light of the new other-than-temporary impairment (OTTI) guidance and potentially changing which securities they will write down in the future.

Specifically, FASB Staff Position (FSP) FAS 115-2, Recognition and Presentation of Other-Than-Temporary Impairments, requires investors to recognize credit-related losses in earnings on securities in their portfolio that they expect to hold¹, with remaining losses documented through Other Comprehensive Income (OCI), a shift dramatically increasing the complexity of mark-to-market accounting standards. Earlier this year, while the US Securities and Exchange Commission fell short of suspending mark-to-market accounting, it thrust upon investors this new standard.

"Investors depend on our ability to effectively interpret key FASB guidance quickly and create appropriate functionality in the technology they rely on for reporting," says Courtlandt Gates, Chief Executive Officer, Clearwater Analytics, "Because of our web-based platform, we can deploy new features very efficiently." In addition to a brand-new white paper, Clearwater Analytics is set to debut its new FAS 115-2 related functionality during the critical session.

As a provider of the only platform on the market to offer a complete solution for dynamically monitoring global investments on a daily basis, Clearwater Analytics is at the vanguard of providing such analysis and education on FASB rulings, as a large portion of its client base of 2,000 investors globally now turn to Clearwater for answers.

In fact, it was through the research for the white paper and technical development of the additional functionality, both set for simultaneous release during the briefing, that Clearwater Analytics account managers, fielding a steady stream of requests for additional insight into the FASB guidance, called for this critical session.

"Our system is designed to provide investors with answers to pressing questions," Gates explains. "Our regular new product features, white papers, educational sessions, one-on-one consultations with dedicated account managers, and more, all come together as part of our integrated, comprehensive approach to offering investors the services they need, when it counts the most," Gates adds.

Confirmed to attend the virtual summit are scores of institutional investors who have already written down securities pursuant to FAS 115-1 as well as dozens more who have not written down securities yet. Both groups are wrestling with FAS 115-2 compliance moving forward.

"Let's just say, we anticipate a lively discussion," says Eric Gwilliam, Business Development, Clearwater Analytics. "FAS 115-2 was intended to make the guidance more operational and make disclosure of OTTI in financial statements more transparent. In practice, though, interpreting what that guidance means to your portfolio can involve a steep learning curve. That's where we come in. Our platform allows us to combine state-of-the-art technology with world class customer support to provide our clients with solutions to address these emerging accounting issues as quickly as possible."

Clearwater Analytics recommends investors develop and endorse a process that leverages this new guidance in a way that will satisfy their auditors. The new Clearwater Analytics white paper provides a practical analysis of FAS 115-2 so investors can establish proper processes and procedures in accordance with the new regulations.

The information provided in this white paper and explored during tomorrow's briefing is the results of experience with investment accounting issues and interaction with accountants and investment service providers. It is not intended to be relied upon substantively; rather, it is intended to inform and provide a discussion framework that treasury practitioners, internal management, and accounting and audit staff can use to discuss the impairment process.

Dial-in Access for Media for Clearwater Analytics FAS 115-2 Briefing

Please register at: https://clearwateranalytics.webex.com for the dial-in information.

Media Briefings Available Upon Request

FAS 115-2, part of a raft of guidance pronounced by the FASB in April as a direct result of the legislative action aimed at alleviating the economic crisis, is likely the first salvo in an accelerated evolution of accounting standards for the financial services. Clearwater Analytics closely monitors FASB proclamations and interprets ramifications, providing a range of educational resources (incl. White Papers, Training, Alerts, Links to Industry Resources, and more) easily accessible at https://www.clearwateranalytics.com/Resources/education.asp. Journalists interested in learning more about the real impact of FASB are encouraged to schedule your Media Briefing with Clearwater Analytics, please contact Chris Keller by calling 208.489.7565 or email ckeller@clearwateranalytics.com.

Further Reading

FAS 115-1 and FAS 115-2 trace their lineage to FAS 115, issued by the FASB in 1993 to address accounting for and reporting on investments in equity securities that have readily determinable fair values, as well as all investments in debt securities.

As FAS 115-2 expands the guidance of FAS 115-1, Clearwater Analytics recommends its clients and media be familiar with FAS 115 and 115-1. Clearwater Analytics has two white papers that provide analysis and education: FAS 115-1 - A Thought Framework on Impairment and the Organizational Policy and FAS 115-1 - A Practical Analysis. Both documents are available for download online by visiting https://www.clearwateranalytics.com/Resources/education.asp.

About Clearwater Analytics

Launched in 2003, Clearwater Analytics reports on nearly $400 billion in assets for more than 2,000 investors globally. The company's technology represents the only platform on the market to offer a complete solution for dynamically monitoring global investments on a daily basis.

To schedule a free demonstration of Clearwater Analytics technology and services, visit www.clearwateranalytics.com/demo, call 1.800.250.7543, or email info@clearwateranalytics.com.

¹ FAS 115-2 requires investors with the "intent to sell" or "more likely than not will be required to sell" to recognize the full impairment in earnings.

Clearwater Analytics
Chris Keller, 208-489-7565
ckeller@clearwateranalytics.com