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 review includes discussions on the ongoing controversy surrounding its impact on the global economy, as well as the current FASB & IASB proposals that will potentially require fair value accounting for all financial instruments. Finally, this course will provide an overview of the authoritative guidance for auditing fair value measurements and disclosures, SAS No. 101.
Delivery Method: Online Interactive Self Study
Advanced Preparation: None
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Michael J. Walker
Category: Accounting and Auditing
Field of Study: Accounting
Passing Score: 70%
For More Detail:
Chapter 1: The Evolution of Fair Value
1. Define the 'historical cost' method of accounting and calculate the current 'amortized cost' of assets and liabilities accounted for under this method.
2. Define 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.
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CPA: Suitable for all CPAs
IRS: Enrolled Agents Program Number