As the business world increasingly gravitates towards fair value measurements in financial reporting, understanding and applying these concepts has become crucial. This course is tailored to demystify the complexities of ASC 820 Fair Value Measurement and ASC 825-10 Financial Instrument-Fair Value Option. It provides a detailed exploration of the fair value framework, offering practical guidance on applying fair value measurements and identifying common valuation techniques. Through this course, you will gain the ability to recognize situations where fair value is essential, understand the prioritization of inputs in the fair value hierarchy, and meet the expanded disclosure requirements. The course is enriched with excerpts and references from ASC 820 and ASC 825-10, along with relevant examples, making it a practical tool for professionals in tax, accounting, and finance. By the end of this course, you will be equipped with the knowledge and skills to proficiently handle fair value measurements in your professional practice.
Learning Objectives
After completing this course, you should be able to:
Recognize the concepts of using present values that help determine fair value;
Identify the appropriate circumstances for using fair values in financial reporting;
Recognize common valuation techniques used in determining the fair value of different assets and liabilities;
Recognize how the fair value hierarchy prioritizes the inputs used to measure fair value; and
Identify the expanded disclosure requirements for fair value measurements.
Major Topics
Background of ASC 820
Fundamentals of Fair Value
Assessment of the Unit of Account
Identification of Markets for Basis of Valuation
Application of Valuation Techniques
Fair Value Measurements and Inactive Markets
General Rules of Financial Assets and Liabilities
Presentation and Disclosure
