CONTINUING EDUCATION FOR TAX & FINANCIAL PROFESSIONALS

Fair Value Accounting: An Overview

Icon_Self-Study
Self-Study
Icon_Level
Overview
Credits
CPE Credits
3 Credits: Accounting
1 Credits: Auditing

Course Description

Numerous FASB Standards have been issued requiring certain items to be measured and reported at ‘fair value’ on the balance sheet. Prior to the release of ASC 820 Fair Value Measurements and Disclosures (formerly known as SFAS 157), the concept of fair value had never been formally defined in U.S. accounting literature. Since its issuance in September 2006, ASC 820 has become one the most controversial accounting standards ever released.

This course provides a conceptual review of fair value accounting as outlined in ASC 820 and other U.S. accounting standards. The materials also provide an overview of authoritative guidance contained in SAS No. 101, Auditing Fair Value Measurements and Disclosures.

Learning Objectives

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

Chapter 1

  • Define the historical cost method of accounting, noting the application of the concept, pros and cons, and its measurement on the balance sheet
  • Define the fair value method of accounting for assets and liabilities and name accounting practices consistent with this method
  • Recognize the differences between the historical cost and fair value methods of accounting, noting issues and criticisms for each
  • Recognize the historical aspects of ASC 820, noting the elements the standard impacted

Chapter 2

  • Recognize how fair value is defined in ASC 820, Fair Value Measurements and Disclosures, noting accounting policies and prices that are compliant with the definition
  • Identify accounting practices that are consistent with the fair value framework established in ASC 820, noting key concepts, terms, and the interdependence of the various components

Chapter 3

  • Cite the valuation techniques that are consistent with the guidance of ASC 820
  • Identify the proper classification of valuation inputs into the levels of the fair value hierarchy
  • Recognize the due diligence and responsibility requirements for pricing services and broker quotes

Chapter 4

  • Cite accounting practices consistent with the fair value disclosure requirements outlined in ASC 820
  • Cite auditing practices consistent with the standards of fieldwork related to auditing fair value measurements and disclosures included in SAS No. 101
  • Identify roles that management and the auditor have in the fair value measurement process

Chapter 5

  • Recognize the scope of the fair value option under ASC 825-10, noting its proper application, potential benefits, timing of the option, and accounting impact
  • Identify assets and liabilities that are eligible for the fair value option

Chapter 6

  • List the principal arguments and criticisms regarding fair value accounting
  • Identify the limitations of applying the ASC 820 definition of fair value when markets are illiquid or inactive

Course Specifics

Course ID
1163114
Revision Date
August 14, 2020
Advanced Preparation

None

Compliance information

NASBA Provider Number: 103220

Course Instructor

Michael J. Walker Headshot
Michael J. Walker, CPA

Michael J. Walker, CPA, is based in New England and has decades of accounting experience in the financial services, information technology services, and construction industries. He has an extensive technical accounting background that includes hands-on experience with U.S. GAAP and International Financial Reporting Standards (IFRS). His expertise includes accounting for financial instruments, securitizations, and other banking products. He graduated from Bentley University with a BS in finance and an MS in accountancy.

Fair Value Accounting: An Overview

Expert Instructors
Format
CPE CREDITS
3 Credits: Accounting
1 Credits: Auditing

$116.00$136.00

Clear
Icon_Self-Study
Self-Study
Icon_Level
Overview
Credits
CPE Credits
3 Credits: Accounting
1 Credits: Auditing

Course Description

Numerous FASB Standards have been issued requiring certain items to be measured and reported at ‘fair value’ on the balance sheet. Prior to the release of ASC 820 Fair Value Measurements and Disclosures (formerly known as SFAS 157), the concept of fair value had never been formally defined in U.S. accounting literature. Since its issuance in September 2006, ASC 820 has become one the most controversial accounting standards ever released.

This course provides a conceptual review of fair value accounting as outlined in ASC 820 and other U.S. accounting standards. The materials also provide an overview of authoritative guidance contained in SAS No. 101, Auditing Fair Value Measurements and Disclosures.

Learning Objectives

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

Chapter 1

  • Define the historical cost method of accounting, noting the application of the concept, pros and cons, and its measurement on the balance sheet
  • Define the fair value method of accounting for assets and liabilities and name accounting practices consistent with this method
  • Recognize the differences between the historical cost and fair value methods of accounting, noting issues and criticisms for each
  • Recognize the historical aspects of ASC 820, noting the elements the standard impacted

Chapter 2

  • Recognize how fair value is defined in ASC 820, Fair Value Measurements and Disclosures, noting accounting policies and prices that are compliant with the definition
  • Identify accounting practices that are consistent with the fair value framework established in ASC 820, noting key concepts, terms, and the interdependence of the various components

Chapter 3

  • Cite the valuation techniques that are consistent with the guidance of ASC 820
  • Identify the proper classification of valuation inputs into the levels of the fair value hierarchy
  • Recognize the due diligence and responsibility requirements for pricing services and broker quotes

Chapter 4

  • Cite accounting practices consistent with the fair value disclosure requirements outlined in ASC 820
  • Cite auditing practices consistent with the standards of fieldwork related to auditing fair value measurements and disclosures included in SAS No. 101
  • Identify roles that management and the auditor have in the fair value measurement process

Chapter 5

  • Recognize the scope of the fair value option under ASC 825-10, noting its proper application, potential benefits, timing of the option, and accounting impact
  • Identify assets and liabilities that are eligible for the fair value option

Chapter 6

  • List the principal arguments and criticisms regarding fair value accounting
  • Identify the limitations of applying the ASC 820 definition of fair value when markets are illiquid or inactive

Course Specifics

Course ID
1163114
Revision Date
August 14, 2020
Advanced Preparation

None

Compliance information

NASBA Provider Number: 103220

Course Instructor

Michael J. Walker Headshot
Michael J. Walker, CPA

Michael J. Walker, CPA, is based in New England and has decades of accounting experience in the financial services, information technology services, and construction industries. He has an extensive technical accounting background that includes hands-on experience with U.S. GAAP and International Financial Reporting Standards (IFRS). His expertise includes accounting for financial instruments, securitizations, and other banking products. He graduated from Bentley University with a BS in finance and an MS in accountancy.

Fair Value Accounting: An Overview

Expert Instructors
Format
CPE CREDITS
3 Credits: Accounting
1 Credits: Auditing

$116.00$136.00

Clear