Overview:
ASC 820 (FAS 157) on fair value accounting resulted in a dramatic shift away from historical cost accounting. Learn how the FASB's and IASB's convergence efforts may impact fair value accounting in the future. You will:
- Understand the fundamentals of fair value measurement
- Learn valuation methodologies, techniques and tools
- Discover how the valuation process integrates with financial statement preparation
- Understand expanded disclosure requirements
Objective:
To provide accountants, financial analysts and preparers of financial statements with the most current understanding of this complex topic. You will learn the principles put forth by FASB in relation to the concept of fair value, as well as their practical application.
Emphasis:
- Definitions, scope, contents and implementation of ASC 820 (FAS 157)
- Valuation approaches and techniques
- Definition of the "exit price"
- Difference between "in-use" and "in-exchange"
- What is a market participant?
- How does fair value apply to liabilities?
- Meaning of the principal market and highest and best use
- The fair value hierarchy
- Restricted assets
- Present value techniques and probabilistic forecasting
- The "Fair Value Option" (ASC 825) (FAS 159) and its disclosure requirements
- Guidance on valuing illiquid assets
- SEC spotlight on fair value accounting standards
- Numerous accounting standards that require fair value measurements