$2.1 Billion in Write-Downs Taken on Auction-Rate Securities, Pluris Valuation Advisors' Survey Finds.Most Write-Downs Taken By Companies With Big 4 Auditors NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Accounting for auction-rate securities (ARS ARS In currencies, this is the abbreviation for the Argentine Peso. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) at full par value is becoming less common, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the latest survey of auction-rate securities holders from Pluris Valuation Advisors LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . Of 460 public companies included in the survey, as of July 31, 2008, 281 (63.7%) have taken write-downs on their auction-rate securities totaling $2.1 billion with a total par value of $32.3 billion. However, a majority of the remaining 179 companies have not yet filed their 10-Q reports for the second quarter. Extrapolating from recent filings, Pluris estimates that another 100 public companies in the U.S. will take impairments in August. "Public companies and their auditors are constantly reevaluating the fair value of their ARS positions," according to Pluris President Espen Robak. The most recent filings reveal an increasing majority of holders writing down their auction-rate securities. The percentage of filings with write-downs increased from the 40% level a few months ago to around 80% for filings made during June and July. While the increasing write-downs mark a clear trend, there is little consistency in the size of the discounts taken. Discounts range from near zero to 98%. Part of the variation is supportable, as different types of auction-rate securities have held their value better than others. The Pluris survey also reports write-downs by audit firm. For the 72 filings made during June and July, the following data is presented in the survey: [TABLE OMITTED] In spite of their illiquidity, a secondary market has developed for auction-rate securities. "While many corporations have taken write-downs, the size is not always reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of the discounts that would be taken in a sale under current market conditions," Robak said. "To comply with FAS 157, public companies need to validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data the discounts they're taking with real-world market data." The Pluris study, "Accounting Impact of the Auction Failures," is available at no cost at www.PlurisValuation.com or by contacting Pluris Valuation Advisors at 212-248-4500. About Pluris Valuation Advisors Pluris Valuation Advisors LLC of New York, N.Y., is a full-service valuation firm specializing in the valuation of restricted securities of public companies, auction-rate securities, stock options and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. that lack liquidity. Pluris valuations are used for financial reporting, tax purposes, business transactions and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. support. Additional information is available at www.PlurisValuation.com. |
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