FAS+157FV+Measurements

FAS+157FV+Measurements - Statement of Financial Accounting...

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Statement of Financial Accounting Standards No. 157 Fair Value Measurements 1 . FAS 157 was issued to : Define fair value Establish a framework for measuring fair value Expands disclosures about fair value 2 . Definition of Fair Value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. a. A fair value measurement is for a particular asset or liability. The measurement should consider the attributes specific to the asset or liability. The asset or liability might be a standalone asset or liability or a group of assets and/or liabilities (unit of account). b. The objective of a fair value measurement is to determine the price that would be received to sell the asset or paid to transfer the liability at the measurement date (exit price). The measurement assumes an orderly transaction between market participants to sell the asset or transfer the liability at the measurement date allowing for normal
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This note was uploaded on 07/08/2011 for the course ACG 4133c taught by Professor Ajinka during the Summer '08 term at University of Florida.

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FAS+157FV+Measurements - Statement of Financial Accounting...

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