Fair Value Accounting Overview Self-Study Webinar
Overview
Fair value has become the central measurement basis in today’s financial reporting and likely will continue to be the basis for recognition of many accounting transactions in the future. ASC 820 created a dramatic shift in historical cost accounting and set forth a framework for measuring fair value. For this course, you will learn how to determine what functions drive fair value, and what impairment measurements companies must make regarding tangible assets, goodwill and intangibles. In this self-study webinar, you will learn about:
- The accounting rules in Topic 820
- The differences between US GAAP and IFRS 13 regarding FV measurements and disclosures
- Understanding the auditor’s role in auditing FV measurements
- Determining tangible asset impairments
- Issues frequently encountered in fair value
Objective
To provide CPAs and other financial professionals 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.
DETAILED LEARNING OBJECTIVES
• Identify specified terminology relevant to fair value accounting
• Recognize arguments both for and against the use of fair value in accounting
• Recognize specified topics in which GAAP mandates the use of fair value
• Identify the perspective from which fair value is to be assigned
• Identify the characteristics of the market in which fair value is presumed to be assigned
• Identify the basis on which the fair value standards require that fair value be measured
• Recognize the role of the highest and best use concept in fair value accounting
• Recognize the acceptable valuation methods/approaches identified in Topic 820
• Identify the primary valuation method used to value tangible assets
• Identify the unit of accounting for goodwill impairment testing purposes
• Recognize the valuation approach that includes the discounted cash flow technique
• Recognize a description of Level 1, Level 2, and Level 3 inputs to fair value accounting
• Recognize the valuation input that would, on a relative basis, be most likely to result in litigation
• Recognize the valuation input that would be most likely to be used as collateral against a loan
• Identify the overall disclosure requirements of Topic 820
• Identify the most common instances in which non-financial institution companies must apply fair value measurements
• Recognize the frequency in which goodwill not being amortized is currently tested for impairment
Emphasis
- Introduction to fair value
- Using fair value in financial reporting
- Liability definition
- Business combinations
- Fair value hierarchy
- NAV practical expedient
- Three valuation approaches: cost, market, income
- Scope of ASC 820
- The five-step framework
- Management process and auditor’s role in FV measurement
- Measuring fair value of intangible assets
- Goodwill testing requirements
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