...Financial Accounting Standards Board ORIGINAL PRONOUNCEMENTS AS AMENDED Statement of Financial Accounting Standards No. 157 Fair Value Measurements Copyright © 2010 by Financial Accounting Foundation. All rights reserved. Content copyrighted by Financial Accounting Foundation may not be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the Financial Accounting Foundation. FAS157 Statement of Financial Accounting Standards No. 157 Fair Value Measurements STATUS Issued: September 2006 Effective Date: For financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years Affects: Amends APB 21, paragraphs 13 and 18 Deletes APB 21, footnote 1 Amends APB 28, paragraph 30 Amends APB 29, paragraphs 18 and 20(a) Deletes APB 29, paragraph 25 and footnote 5 Amends FAS 13, paragraph 5(c) Amends FAS 15, paragraphs 13 and 28 Deletes FAS 15, footnotes 2, 5a, and 6 Amends FAS 19, paragraph 47(l)(i) Amends FAS 35, paragraph 11 and footnote 5 Deletes FAS 35, footnote 4a Amends FAS 60, paragraph 19 Deletes FAS 60, footnote 4a Amends FAS 63, paragraphs 4, 8, and 38 through 40 Amends FAS 65, paragraphs 4, 6, 9, 10, 12, and 29 Amends FAS 67, paragraphs 8 and 28 Deletes FAS 67, footnote 6 Amends FAS 87, paragraphs 49 and 264 and footnote 12 Deletes FAS 87, footnote...
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...IFRS AT A GLANCE IFRS 13 Fair Value Measurement As at 1 January 2014 IFRS 13 Fair Value Measurement Page 1 of 2 Effective Date Periods beginning on or after 1 January 2013 SCOPE AND SCOPE EXEMPTIONS IFRS 13 applies when another IFRS requires or permits fair value measurements (both initial and subsequent) or disclosures about fair value measurements, except as detailed below: Exemption from both measurement and disclosure requirements: Share-based payment transactions within the scope of IFRS 2 Share-based Payment Leasing transactions within the scope of IAS 17 Leases Measurements that have some similarities to fair value, but are not fair value, such as: - Net realisable value in IAS 2 Inventories - Value-in-use in IAS 36 Impairment of Assets. Exemption from disclosure requirements only: Plan assets measured at fair value in accordance with IAS 19 Employee Benefits Retirement benefit plan investments measured at fair value in accordance with IAS 26 Specific quantitative disclosure requirement: Accounting and Reporting by Retirement Benefit Plans Assets for which recoverable amount is fair value less costs of disposal in accordance with IAS 36. DEFINITION OF FAIR VALUE Fair Value: measurement-date price received to sell and asset, or paid to transfer a liability, in an orderly transaction between market participants. Price The price is determined at measurement date under current market conditions (i.e. an exit price). This is regardless of whether...
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...initial requirements that satisfy stakeholder's needs and expectations. Finalizing all activities across all Process Groups to formally complete the project or phase Project Management Plan Accepted Deliverables Organizational Process Assets Expert Judgment Tool & Techniques Outputs Inputs Inputs Project Statement of Work Business Case Contract (when applicable) Enterprise Environmental Factors Organizational Process Assets Tool & Techniques Outputs Expert Judgment 4.6 Close Project or Phase Closing Process Group 4.1 Develop Project Charter Initiating Process Group Final Product, Service, or Result Transition Organizational Process Assets Updates Project Charter Reviewing all change requests, approving, and managing changes to deliverables, org process assets, documents, and the PM Plan Project Management Plan Work Performance Information Change Requests Enterprise Environmental Factors Organizational Process Assets Expert Judgment Change Control Meetings Tool & Techniques Inputs Documenting actions necessary to define, prepare, integrate, and coordinate all other plans Project Charter Inputs Outputs from Planning Processes Enterprise Environmental Factors Organizational Process Assets Tool & Techniques Outputs Expert Judgment 4.5 Perform Integrated Change Control Monitoring & Controlling Process Group 4.2 Develop Project Management Plan Change Request Status Updates Project Management Plan Updates Project Document Updates Outputs 4. Project Integration...
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...Accounting Theory and Contemporary Issues ADMS 4510 B Assignment #3 A discussion of SFAC # 7 –Present Value of Expected Cash Flows versus Exit Value As a Proxy for Fair Value Yolando Robinso SFAC 7 asserts that present value techniques should be used to estimate fair value and recommends using an expected cash flow approach. Critically discuss the contents of this SFAC and critically compare it to using exit value as the proxy for fair market value. Statement of Financial Accounting Concepts (SFAC) No. 7 was introduced by Financial Accounting Standards Board (FASB) in February 2000 as an answer to a need. To begin, let us first see what was needed. Traditionally, professionals have used the Historical Model for valuation of assets, both tangible and intangible. However, as the use of present value techniques became more widely used in accounting and financial fields, it raised questions and discussions prompting the introduction of SFAC 7. It is designed to offer guidance on present value techniques in accounting measurements . “It is expected to serve the public interest by providing structure and direction to financial accounting and reporting to facilitate the provision of evenhanded financial and related information that helps promote the efficient allocation of scarce resources in the economy and society, including assisting capital and other markets to function efficiently.” We understand that the public is interested in the amount, timing and uncertainty...
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...An alternative approach to measurement that seeks to capture changes in asset and liability values over time. The International Accounting Standards Board (IASB) defines fair value as "... an amount at which an asset could be exchanged between knowledgeable and willing parties in an arms length transaction". Under the fair value measurement approach, assets and liabilities are re-measured periodically to reflect changes in their value, with the resulting change impacting either net income or other comprehensive income for the period. The result is a balance sheet that better reflects the current value of assets and liabilities. The cost is greater volatility in periodic reported performance caused by changes in fair value. The notion of fair value accounting is intuitive when applied to quoted investments such as equities, bonds, commodities, etc. that are carried in an entity’s balance sheet at their market value. This form of fair value accounting is often termed mark-to-market accounting. However, while market prices are one aspect of fair value measurement, the term is increasingly being used to describe measurement by other means. For example, accountants often arrive at an estimate of fair value for non-quoted investments based on a model (e.g., a share option valued by applying a specialist option valuation model) or specialist opinion. Such applications of fair value measurement are referred to as mark-to-model accounting. The IASB has followed US standard-setters...
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...The 9 knowledge Areas and the 42 Processes Based on the PMBoK® 4th Prepared by: Amr Miqdadi,PMP,MCSE amiqdadi@pmlead.net www.pmlead.net PMI®, PMP®, CAPM® and PMBOK® Guide are trademarks of the Project Management Institute, Inc. PMI® has not endorsed and did not participate in the development of this product. Integration Management Process Name Develop Project Charter Inputs Outputs Tools and Techniques Project Statement of Work Business Case Project Charter Experts Judgment Project Management Plan Experts Judgment Project Management Plan Approved Change Requests Deliverables Work Performance Information Experts Judgment Project Management Information System Enterprise Environmental Factors Change Requests Organizational Process Assets Project Management Plan Updates Contracts Enterprise Environmental Factors Organizational Process Assets Develop Project Management Plan Project Charter Outputs From Planning Processes Enterprise Environmental Factors Organizational Process Assets Direct and Manage Project Execution Project Document Updates Project Management Plan Performance Reports Change Requests Project Management Plan Updates Enterprise Environmental Factors Monitor and Control Project Work Experts Judgment Project Document Updates Organizational Process Assets Project Management Plan Work Performance Information Change Requests Status Updates Project Management...
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...Structural Risk Management (Asset/Liability Management) (ALM) Section Topic Page 7000 Executive Summary…………………………………………… 7-2 7100 Legislative Summary………………………………………….. 7-3 7200 Policy……………………………………………………………. 7-5 7201 Asset/Liability Management Philosophy…………………….. 7-6 7202 Balance Sheet Mix…………………………………………….. 7-7 7203 Managing Liabilities…………………………………………… 7-9 7204 Managing Assets………………………………………………. 7-13 7205 Pricing…………………………………………………………… 7-14 7206 Terms……………………………………………………………. 7-15 7207 Interest Rate Risk……………………………………………… 7-16 7208 Matching Maturities……………………………………………. 7-17 7209 Foreign Currency Risk………………………………………… 7-18 7210 Financial Derivatives…………………………………………... 7-19 7300 Planning………………………………………………………… 7-21 7400 Risk Measurement and Board Reporting…………………… 7-22 7401 Mix and Yields…………………………………………………. 7-25 7402 Growth………………………………………………………….. 7-26 7403 Financial Margin……………………………………………….. 7-27 7404 Interest Rate Risk Measurement…………………………….. 7-28 7405 Monitoring Derivatives………………………………………… 7-35 7500 Risk Management……………………………………………… 7-36 7501 Reliance on Qualified and Competent Staff and Volunteers 7-37 7502 Managing Interest Rate Risk… ……………………………… 7-38 Executive Summary The goal of asset/liability management (ALM) is to properly manage the risk related to changes in interest rates, the mix of balance sheet assets and liabilities, the holding of foreign currencies, and the use of derivatives. These risks should be managed...
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...Are coastlines managed successfully? Purpose of this investigation -is’ hold the line’ costal management successful at Swanage bay? -is’ managed retreat’ successful at Studland bay? Swanage bay The coastal management at Swanage bay is hold the line they use both soft and hard engineering the soft engineering includes beach replenishment and cliff regarding the hard engineering includes groynes and seawalls. My source is Google Earth we also looked at EdExcel Gcse B (Pearson) in class On our trip to Dorset we are going to visit Studland and Swanage bay which are found on a discordant coastline they are both soft rock while in-between it is hard rock, they are both on the coast of the English channel Dorset is to the south of London Studland bay Studland bay The coastal management at Studland bay is managed retreat Studland is a small village on the Isle of Purbeck in the English county of Dorset, they also planted marram grass so it can absorb the wave energy the marram is cheap and is soft engineering and is not expensive like hard engineering. Dorset council have put up signs on the beach telling people not to step on and destroy the marram grass * This is how the area is managed vulnerable areas and areas recently planted with marram grass (which is used to stabilise the dunes) are fenced off to limit access and damage. * Boardwalks have been laid through the dunes to focus tourists onto specific paths. * Car parks have been provided and people...
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...Liquidity Risk Management |Section |Topic |Page | |8000 |Executive Summary……………………………... | 8-2 | |8100 |Legislative Summary…………………………….. | 8-3 | |8200 |Policy……………………………………………… | 8-4 | |8201 |Liquidity Management Philosophy……………... | 8-5 | |8202 |Adequate Range of Liquidity……………………. | 8-6 | |8203 |Sources of Liquidity……………………………… | 8-7 | |8204 |Limits on Borrowing……………………………… | 8-8 | |8205 |Large Deposits…………………………………… | 8-9 | |8300 |Planning…………………………………………… |8-10 | |8400 |Risk Measurement and Board Reporting……… |8-11 | |8500 |Risk Management………………………………... |8-13...
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...value, presenting the portion of the fair value change by using the fair value hierarchy. This memo will present the appropriate classification in the fair value hierarchy for each investment and provide appropriate authoritative guidance to support the determination. Analysis The following analysis for classification of each instrument will be based on SFAS 157, which provides a hierarchy of the three-level inputs to the valuation techniques that can be used to measure fair value. Instrument 1 —Collateralized Debt Obligation The fair value measurement of the Collateralized Debt Obligation investment shall be categorized within Level 3 of the fair value hierarchy. According to ASC 820-10-35-52, “Level 3 inputs are unobservable inputs for the asset or liability” and ASC 820-10-35-53, “unobservable inputs shall reflect the assumptions that market participants would use when pricing the asset or liability, including assumptions about risk.” FFC determined risk-adjusted discount rate, implied rate of return, credit adjustment and liquidity risk adjustment which are estimates of assumption, so they should be unobservable inputs for measuring the CDO. Also, ASC 820-10-35-53 presents that “Unobservable inputs shall be used to measure fair value allowing for situations in which there is little,...
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...deals with radiation, unstable compounds, particles and atoms. As a result, the technology that we have in the field of physics, but across the board in the physical science field of astronomy, chemistry, physics and earth science. Challenges in Measurements Over the years there have been many adventures that allow for direct measurements within the field of physics, there are still many obstacles and challenges to making direct observations. Physics is the study of energy and matter and the interaction between-both of which are impossible to observe with the naked eye. The first major challenge in making direct measurement in physics is the size of the particles being studied. To solve this issue, physicists study these particles indirectly through things like associated radiation, their energy, or the displacement of other atoms. Almost all measurements that have been made on atoms or subatomic particles has been the result of indirect measurement. The second major obstacle to direct measurement in the field of physics is the Heisenberg Uncertainty Principle. This principle states that it is important to measure both velocity and the location of a particle at exactly the same time, because the very act of measurement will affect the particle. This creates a major difficulty...
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...How Fair Value Measurement Changes Risk Management Behavior in the Insurance Industry JANUARY 2013 SPONSORED BY Financial Reporting Section Society of Actuaries PREPARED BY Bruce B. Rosner, FSA, MAAA Ernst & Young LLP Mark J. Freedman, FSA, MAAA Ernst & Young LLP The opinions expressed and conclusions reached by the authors are their own and do not represent any official position or opinion of the Society of Actuaries or its members. The Society of Actuaries makes no representation or warranty to the accuracy of the information. In addition, the discussion and examples presented in this paper are for educational purposes. They are not to be viewed as an authoritative statement by the Society of Actuaries or Ernst & Young LLP on the quality and/or appropriateness of an individual company’s practices or an indicator of “better” practice from one company relative to another. © 2013 Society of Actuaries, All Rights Reserved Acknowledgments We would like to acknowledge and thank a number of individuals who contributed to the success of this study: • Ronora Stryker and Jan Schuh from the Society of Actuaries for providing leadership and coordination The Project Oversight Group for guidance throughout this project: • Robert Baldwin • Mark Bergstrom • Jim Bridgeman • Joonghee Huh • Kathryn McCarthy (Chair) • James Norman • Jim Reiskytl • Doug Van Dam The companies that volunteered to be interviewed anonymously for this study Other members of the Ernst & Young team who...
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...Abstract There are many issues surrounding fair value accounting, this assignment concerns about the discussion of fair value measurement under both the International Accounting Standard Board (IASB) and US national standard-setter, the Financial Accounting Standards Accounting (FASB). So far, IASB and FASB have created a uniform framework for how to measure fair value for entities around the world. By publishing IFRS 13 Fair Value Measurement, the IASB established a single source of guidance under IFRS for all fair value measurements. After searching relevant sources from financial books and economic websites, some of the issues about fair value accounting have been clarified and analysed. This assignment provides a better understanding of the joint work between IASB and FASB, the definition of fair value under both standards, the relevant issue about IFRS 13 and why accounting differences exist. A. Explain the purpose of the Memorandum of Understanding between the IASB and the US national standard-setter, the Financial Accounting Standards Board (FASB). Theoretically, A Memorandum of Understanding is a document that involved a bilateral or multilateral agreement between parties (Wikipedia 2011). In this particular research essay, the Memorandum of Understanding is a convergence process that both the International Accounting Standard Board (IASB) and US national standard-setter, the Financial Accounting Standards Accounting (FASB) would take steps to balanced the reciprocal...
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...accomplish this quest, scientists use many tools to measure and analyze a variety of elements and phenomena in order to have a clear understanding of why things are the way they are. There are times however when direct measurement of something is not an option requiring scientists to find alternate solutions. Astronomy is the scientific study of the universe and what it is comprised of such as stars and planets. A scientist cannot simply use a ruler to measure how far away a star actually is and therefore indirect measurement techniques are needed. One such technique is the parallax method which involves triangulation. By looking at a star and record its location and then looking at it again six months later, astronomers can measure the distance of the angle of viewing. Combining this information with the orbital diameter of Earth to the sun and a little bit of geometry, astronomers can see that the different angles produce different distances (How are astronomers, 2000). Objects in space aren’t the only challenges scientists face when trying to obtain measurement data. Earthquakes are a dangerous phenomenon caused by the shifting of Earth’s tectonic plates along its fault lines. Fault lines are many kilometers below the surface of the earth making any direct measurement methods extremely difficult. When the tectonic plates shift to cause an earthquake, energy is released and radiates out from the fault line similar to ripples in a pond. These energy...
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...According to FASB, This Statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. This Statement applies under other accounting pronouncements that require or permit fair value measurements, the Board having previously concluded in those accounting pronouncements that fair value is the relevant measurement attribute. Accordingly, this Statement does not require any new fair value measurements. However, for some entities, the application of this Statement will change current practice. The argument behind the use of present value techniques is that more relevant information is produced due to factoring in the uncertainties and risks associated with the amount and timing of cash flows. This form of accounting measurement is designed to capture the economic substance of a set of cash flows in a manner similar to that of how the market behaves. Present value techniques attempt to measure assets (or liabilities) at their fair value. Present value in accounting measurements argues that its application results in a decrease in the reliability of accounting information. A present value calculation requires numerous estimates regarding the timing and amount of future cash flows, interest rates, and economic conditions. The use of these estimates is seen as a threat to the reliability of accounting information either through differing opinions as to future conditions...
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