Course Information

Numerous FASB Standards have been issued requiring certain items to be measured and reported at “fair value” on the Balance Sheet. Prior to the release of ASC 820 Fair Value Measurements and Disclosures (formerly known as SFAS 157), the concept of “fair value” had never been formally defined in U.S. accounting literature. Since its issuance in September 2006, ASC 820 has become one the most controversial accounting standards ever released. This course provides a conceptual review of fair value accounting, as outlined in ASC 820 and other U.S. accounting standards. This course will also provide an overview of the authoritative guidance for auditing fair value measurements and disclosures, SAS No. 101.

Chapter 1: The Evolution of Fair Value 1. Identify the ‘historical cost’ method of accounting and calculate the current ‘amortized cost’ of assets and liabilities accounted for under this method. 2. Identify the ‘fair value’ method of accounting for assets and liabilities and recognize accounting practices consistent with this method. 3. Recognize the differences between the ‘historical cost’ and ‘fair value’ methods of accounting. Chapter 2: Measurement 1. Recognize ‘fair value’ as outlined in ASC 820 Fair Value Measurements and Disclosures. 2. Recognize accounting practices that are consistent with the fair value framework established in ASC 820. Chapter 3: Valuation Techniques and Inputs 1. Recognize valuation techniques that are consistent with the guidance of ASC 820. 2. Recognize the proper classification of valuation inputs into the levels of the fair value hierarchy. Chapter 4: Auditing Fair Value Measurements and Disclosures 1. Recognize accounting practices consistent with the fair value disclosure