Multinational Financial Institution

The Situation

The institution issued complex structured notes containing embedded derivatives. These derivatives had to be marked to market quarterly for financial reporting under the new requirements of FAS 133.

NERA's Role

NERA worked with the insitution on a very short time schedule to bifurcate the securities and value the derivatives for the first quarter reports, and then developed and implemented standardized procedures for subsequent quarters.

The Result

NERA has worked closely with the firm's auditors to verify valuations during the quarterly audit cycles.