Am i correct in thinking that under PPA valuations, assets for section 404 purposes are
always the same as section 430 assets. In other words ,we adjust for contributions made
for the current plan year prior to the valuation date at the effective rate,but there is
no adjustment for contributons made during prior plan years but not previously deducted?

Wouldn't 404 assets still be reduced to reflect contributions made but not deducted? If you don't do this, such contributions might never become deductible.

Also, question of how to treat accrued contributions -- i.e., whether or not these should be discounted.

Perhaps, these questions are addressed elsewhere.

Andy,

prior to the pension protection act, the assets under
404 were adjusted per the 404 regulations for
various purposes one of which was the full funding limitation
under section 412. since the full funding limitaion under 412
does not exist do we automatically apply this construct
to the PPA'06 maximum. I guess it makes sense to allow
them to be deducted currently, but whether they should grow
at the effective rate or the asset return rate is unclear i think.
fortunately i only have one such case.

The new 404 employs a definition of FFL under a new 431, which appears to apply only to multi-employer plans.

Since 404(o) references assets determined under 430(g)(3), I would be very hesitant to reduce those assets by nondeductible contributions until futher guidance comes out.