Fair Value Measurements

Author: James F. Green, CPA

CPE Credit:  2 hours for CPAs

This course introduces the GAAP framework for measuring an item at its fair value, as set out in FASB Topic 820, Fair Value Measurement. This framework sets out the concept of fair value, discusses valuation approaches (and related inputs) on which fair value measurement may be based, and prioritizes inputs (and, by that, measurements) into a hierarchy based on their relative strength. Like GAAP, this course distinguishes between valuation and measurement. Valuation—the act of making judgments about the value of an item—is an activity broader than financial reporting. Measurement—the act of assigning a single value to an item for financial reporting purposes—involves valuation but ultimately requires the selection of a single amount to be recognized.

Presented by Miles Hutchinson.

Publication Date: February 2019

Designed For
Accounting professionals and CPAs

Topics Covered

  • The Framework
  • The Fair Value Concept
  • Core Definition of Fair Value
  • Market Participant
  • Principal Market vs. Most Advantageous
  • Transaction Costs
  • Valuation Approaches and Related Inputs
  • The Hierarchy
  • Measuring Certain Items
  • Fair Value of a Nonfinancial Asset
  • Disclosures

Learning Objectives

  • Identify the objectives of GAAP's fair value measurement framework
  • Explain the concept of fair value and cite associated definitions
  • List major categories of valuation approaches and related inputs
  • Explain the hierarchy of inputs to fair value measurements
  • Identify the basic disclosures required by ASC 820

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
None

Advance Preparation
None

Registration Options
Quantity
Fees
Regular Fee $55

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