Fair value continues to be one of the most judgment-heavy and closely scrutinized areas of financial reporting. This course provides a clear, practical, and up-to-date exploration of U.S. GAAP fair value measurement principles, with a focus on ASC 825's Fair Value Option and its application to financial instruments. Participants will gain an understanding of valuation concepts, financial-instrument classification considerations, required documentation, internal control implications, and audit expectations associated with fair value measurement. The course also examines control objectives, tests of controls, and substantive procedures commonly applied when auditing fair value estimates. Designed for accounting and assurance professionals, this course equips practitioners with the technical knowledge and real-world insights needed to navigate fair value challenges with confidence and accuracy.
Publication Date: April 2026
Designed For
This course is ideal for professionals involved in the preparation, analysis, or audit of financial instruments measured at fair value.
Topics Covered
- Overview of fair value measurement concepts and GAAP framework
- ASC 825 Fair Value Option: qualifying items, required disclosures, and reporting considerations
- Definition and types of financial instruments and their fair value implications
- Control objectives and internal controls related to fair value measurements
- Tests of controls and substantive audit procedures for fair value estimates
- Practical examples, documentation expectations, and common challenges
Learning Objectives
- Explain the objectives and framework of U.S. GAAP fair value measurement
- Distinguish key concepts, definitions, and valuation principles relevant to fair value
- Identify how various types of financial instruments impact financial reporting and related documentation requirements
- Evaluate control objectives, internal controls, and tests of controls applicable to fair value measurements
- Apply ASC 825 Fair Value Option guidance to qualifying items, disclosures, and reporting
- Develop substantive procedures responsive to fair value risks for financial instruments
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
General knowledge of accounting for financial instruments
Advance Preparation
None
Instructor
Pat Patterson
Cecil Patterson, (Pat), CPA, MBA, is an award-winning, nationally recognized author, speaker, and discussion leader for continuing education courses and numerous state societies. He has experience at the local and national CPA-firm level and as an adjunct university professor.
Pat holds an MBA from the University of North Florida and is a CPA and owner of the firm of Cecil Patterson, CPA. His firm provides, accounting, tax preparation and tax planning services, wealth management services, and consulting for businesses and other professional firms.
Pat has served on the AICPA Council, the FICPA Council, and the FICPA Educational Foundation Board of Trustees.