Fair Value Measurements
Author: Pat Patterson
| CPE Credit: |
2 hours for CPAs |
This course covers the Generally Accepted Accounting Principles (GAAP) framework for measuring an item at its fair value, as set out in Financial Accounting Standards Board (FASB) Topic 820, Fair Value Measurement. The course discusses the concept of fair value, valuation approaches, related inputs on which fair value measurement may be based and prioritizes inputs into a hierarchy based on their strengths. As GAAP, the course distinguishes between valuation and measurement. The act of making judgments about the value of an item is valuation and is an activity broader than financial reporting. The act of assigning a single value to an item for financial reporting purposes is measurement and involves valuation but ultimately requires the selection of a single amount to be recognized. Also covered are the improvements to the Codification found in ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, April 2019.
Publication Date: December 2023
Designed For
TBD
Topics Covered
- Update of selected FASB Standards issued on Fair Value Measurement
- Update on ASU 2019-04
- Update on selected issues with Fair Value Measurements
- Selected COVID-19 issues and Fair Value Measurements
Learning Objectives
- Identify the objectives of GAAP's fair value measurement framework
- Recognize how to explain the concept of fair value and cite associated definitions
- List major categories of valuation approaches and related inputs
- Recognize how to explain the hierarchy of inputs to fair value measurements
- Identify the basic disclosures required by ASC 820
- Recognize which approach includes an analysis of matrix pricing
- Recognize how to differentiate the level inputs of fair value measurements
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
A general understanding of Fair Value Accounting.
Advance Preparation
None
