Northern Trust Helps Institutional Clients Navigate the Challenges of FAS 157 Implementation

Northern Trust Helps Institutional Clients Navigate the Challenges of FAS 157
Implementation

CHICAGO, Aug. 5 /PRNewswire/ -- Northern Trust (Nasdaq: NTRS) announced
today it has created a "FAS 157 Toolkit" which combines automated processing,
detailed reporting and industry-leading expertise to surround institutional
clients with solutions as they adapt to a new accounting standard related to
fair value measurements and disclosures. The toolkit includes a broad range of
resources to assist clients in implementing the reporting requirements of FAS
157, Fair Value Measurements, which defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements.
"We used the toolkit approach because we feel that by providing an
extensive library of resources to our clients, we can offer more comprehensive
solutions for every aspect of FAS 157 implementation. We wanted to give
clients the information needed to not only assist them in preparing their
disclosures, but also to document their valuation policies and procedures,"
said Debra Clayton, client reporting product manager for Northern Trust. "Our
product includes asset level pricing details, extensive documentation of
pricing methodologies, customization of level determinations and thought
leadership on the challenges facing the industry related to FAS 157."
Addressing more than 50 categories by asset type and market, Northern
Trust's toolkit assists clients in determining level designation of category
1, 2 or 3 for each asset, as required by FAS 157. The toolkit also includes a
report that provides information related to the price type, price source and
exchange -- key elements in determining fair value under FAS 157. This
automated process for identifying and sorting assets is complemented by a
dedicated team of experts, who help clients understand the pricing of their
most complicated assets.
Dr. Susan Mangiero, president of Pension Governance, LLC, asserts, "FAS
157 can be viewed as a fiduciary nightmare or a call to action for improved
pension risk management. Establishing and following a disciplined process is
essential. This importantly includes an understanding as to how service
providers can assist with information."
As part of its commitment to helping clients navigate FAS 157, Northern
Trust recently hosted a forum of service providers and industry experts to
discuss how the industry is adjusting to the accounting standard, from the
perspective of the custodian, pricing vendor, financial statement preparer and
auditor. In addition to Dr. Mangiero, panelists included: Elizabeth Duggan,
vice president of Interactive Data Pricing and Reference Data, Inc.; Sean
McKee, audit sector leader-asset management for KPMG, LLP; Robert Armour,
managing director for Huron Consulting Group; and Mary Strauch and Denise
O'Neal from Nestle USA. Session topics for the July 30 event, held at Northern
Trust headquarters in Chicago, included: -- Providing greater transparency
to Northern Trust's custodial prices
and processes
-- Gaining a broader understanding of pricing methodologies
-- Measuring fair value in light of market information and changes in the
drivers of fair value
-- Expanding valuation oversight processes and policies
-- Preparing for the audit

A complete webcast replay of the forum is available on Northern Trust's
website at northerntrust.com.
"Northern Trust's automated processing and experienced, skilled
professionals assist institutional clients as they implement the reporting
requirements of FAS 157, which are effective for financial statements issued
for fiscal years beginning after November 15, 2007, and interim periods within
those fiscal years," said Peggy Bradley, financial reporting consultant for
Northern Trust. "We are committed to supporting our clients with an evolving
set of tools to facilitate the disclosure of more information and analysis of
the most complex securities and assets, in order to meet the goal of this new
accounting standard intended to better reflect the fair value of all the
assets in a portfolio for which fair value measurement is required."
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of
investment management, asset and fund administration, fiduciary and banking
solutions for corporations, institutions and affluent individuals worldwide.
Northern Trust, a multibank holding company based in Chicago, has a growing
network of 85 offices in 18 U.S. states and has international offices in 15
locations in North America, Europe, the Middle East and the Asia-Pacific
region. As of June 30, 2008, Northern Trust had assets under custody of US$4.0
trillion, and assets under investment management of US$751.4 billion. Northern
Trust, founded in 1889, has earned distinction as an industry leader in
combining exceptional service and expertise with innovative products and
technology. For more information, visit http://www.northerntrust.com.
SOURCE Northern Trust Corporation

John O'Connell, Vice President of Northern Trust Corporation, +1-312-444-2388