There are no prerequisites

Course Description

Some assets and liabilities can now be reported at their fair values, which is a significant divergence from the common practice of only reporting historical costs. Fair Value Accounting helps the accountant sort out the situation by defining when fair value measurements should be performed, the parameters for measuring fair value, and how to disclose this information in the financial statements. The course also notes those situations in which fair value is used to evaluate whether assets have been impaired.



Steven M. Bragg, CPA

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 70 business books. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast.

Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and an auditor with Deloitte & Touche. He holds an MBA from Babson College, a Master of Finance from Bentley College, and a BA from the University of Maine (summa cum laude).

Course Specifics

Jul 25, 2018
There are no prerequisites

Compliance Information

Qualifies for CA Fraud: No

Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • Identify the primary concepts and rules relating to the derivation of fair value measurements.

Chapter 2

  • Note the situations in which the fair value option can be used.

Chapter 3

  • Recognize the situations in which fair values or a modified form of fair values are applied to the valuation of acquired assets and liabilities, as well as the impairment analyses for inventory, fixed assets, and goodwill.

Table of Contents

Chapter 1 – Fair Value Accounting

Learning Objectives


The Fair Value Concept

The Active Market Concept

Transaction Costs and Other Conditions

Transportation Costs

Price Quotes

Bid and Ask Pricing

Measuring Fair Value when Transaction Volume is Low

Identifying Transactions That Are Not Orderly

Highest and Best Use

The Unit of Measure

Entry and Exit Prices

When the Transaction Price May Not Equal Fair Value

Fair Value Measurement Approaches

Calibration of the Valuation Technique

Switching Valuation Techniques

Hierarchy of Information Sources

The Net Asset Value Variation

Fair Value Measurements for Liabilities

Fair Value Measurement Process Flow

Valuation Techniques

Price/Earnings Analysis

Present Value Analysis

Lattice Model Analysis

Use of Multiple Valuation Methods

Fair Value Disclosures

Fair Value of Financial Instruments


Chapter 1 – Review Questions

Chapter 2 – The Fair Value Option

Learning Objectives


The Fair Value Option

Fair Value Option Disclosures


Chapter 2 – Review Questions

Chapter 3 – Fair Value in Asset and Liability Evaluation

Learning Objectives


Fair Value in Business Combinations

Fair Value in Inventory Evaluation

Fair Value in Fixed Asset Evaluation

Fair Value in Goodwill Evaluation


Chapter 3 – Review Questions

Review Question Answers and Rationales



Final Examination

Answer Sheet

Course Evaluation

Choose Your Preferred Format

Online Access

Get immediate access to a robust collection of learning and reference materials, allowing you to dive deep into the information you need. Our self-study materials are authored by top-quality, industry experts who focus on helping you grasp concepts quickly using real-life examples. Download your CPE to any device, and take it with you so you can learn when and wherever you want. Complete your CPE with an online exam, and enjoy instant grading with the option to print your certificate immediately upon passing.

online access
Hard Copy

Our self-study materials are authored by top-quality, industry experts. You’ll receive a bound notebook of all the course materials, shipped to you within one business day. In addition, you’ll also have full online access. Each self-study package includes a robust collection of learning and reference materials to help you cover the information efficiently and put it into practice immediately.

hard copy
Self-Study Video

Experience high-quality instruction with our Self-Study Videos, available to you 24/7. With more than 80+ videos currently in the Western CPE Self-Study Video library, you can see and hear our expert instructors deliver the information you need in a dynamic way that allows you to immediately apply your learning. Unlike a live course or webcast, you can complete the course on your own time, playing and pausing as needed. Self-Study Videos allow you to complete your CPE requirements on your own time.

hard copy

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