Fair Value - 768 Words

Case analysis: Classification of instruments in fair value hierarchy Instrumental 1 In the case, there was a significant decrease in the volume and activity for the instrument because of (1) significant widening of the bid-ask spreads in the markets and the widening continued throughout Q4 2012 (2) a significant decrease in the volume of trades comparing with historical level in Q4 (3) no recent transactions. According to 820-10-35-54-c, it was reasonable to determine that market is not active. Because the adjustments were based on management’s assumption, FFC didn’t used level 1 inputs in the income approach valuation technique (present value technique). In addition, significant adjustment inputs includes credit adjustment (level 3†¦show more content†¦Then, FFC changed its valuation technique from market approach to income approach (discounted cash flow model). Most relevant inputs in this model were level 3 inputs, because they were estimations and assumptions that were not market based. In other words, such inputs were not observable. So, FFC should classify the ARSs into level 3 of the fair value hierarchy in the fourth quarter. Instrument 4 There were no quoted prices available for X’ stock, so the measurement did not belong to level 1 of the Fair Value Hierarchy. In addition, because Most of X’s competitors are either privately held or subsidiaries of larger publicly traded clothing retailers and the shares of the two similar two companies are thinly traded in an observable market, the market is inactive. FFC also needed some significant assumptions to forecast its cash flows. These assumptions were level 3 inputs in accordance with ASC 820-10-55-e. In the case, FFC should use the multiple techniques and weight more market approach than income approach, because (1) general valuation principle is maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs (2) sufficient data could be used to support both the approaches (3) market participants used multiple techniques to invest similar stock. So, under ASC 820-10-35-37A, FFC should category the investment into level 3 of t he fair value hierarchy, in which the lowest level significant inputs are.Show MoreRelatedIs Fair Value Accounting Really Fair?1021 Words   |  5 Pages For our project, we wanted to pick the topic, â€Å"Is fair value accounting really fair?† The first part of our presentation was simply explaining what fair value accounting is. This is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transactions. According to the Financial Accounting Standards Board, the price that would be received to sell an asset or price to transfer a liability in an orderly transaction betweenRead MoreFair Value Measurement2356 Words   |  10 PagesFAIR VALUE MEASUREMENT: IMPLEMENTATION ISSUES AND CHALLENGES (PART 1) (by Tuam Kwok Choon and Ng Kean Kok) INTRODUCTION Since the promulgation of fair value accounting by the International Accounting Standards Board (IASB), the subject matter has been hotly debated by industry players and professionals of the accounting fraternity the world over. Many problems and pitfalls have been highlighted on the mark-to-market premise. For example, David Gwilliam and Richard H.G. Jackson (2008) noted thatRead MoreFair Value Accounting2122 Words   |  9 PagesMoving towards Fair Value Accounting In the past, historical cost measures were mainly used for reporting as they are reliable. However, historical cost is only relevant upon acquiring the asset and becomes irrelevant as time passes. On the other hand, fair value-based reporting, which accounts for changes in fair values, can produce balance sheet figures that provide a better reflection of the company’s value. This is also why accounting bodies are moving towards fair value accounting (FVA). OneRead MoreHistorical Cost and Fair Value1733 Words   |  7 PagesAbstract This paper is written for the accounting theory course as a course project. This paper discusses the differences between the historical cost accounting approach and the fair value accounting approach. The discussion will focus on the debate on using which accounting approach. We begin by stating the definitions of both concepts and discussing them thoroughly, then we state the main advantages of the two approaches followed by comparison between them. The last section of this paper discussesRead MoreFair Value Accounting And Audit2360 Words   |  10 Pages Fair Value Accounting and Audit Ivie Uduebho 4/30/2015 Introduction In today’s businesses, there has been an increase in the demand for financial reporting and also, the need to have reliable measurements of fair value and its disclosures. The need for reliable information has caused continuous change to accounting policies which has posed a challenge not only to management of companies, but also to auditors. The frequent changes in accounting principlesRead MoreEssay on Fair Value Case1940 Words   |  8 PagesCase 11-2(b) Fair Value Disclosures Case 11-2(b) is an extension of Case 11-2(a). For this case, assume that the Case 11-2(a) facts remain, with the exception of the additional assumptions listed below for each security. As stated in Case 11-2(a), Family Finance Co. (FFC) accounts for its investments at fair value, with changes in fair value reflected either in earnings (for trading securities) or other comprehensive income (OCI) (for available-for-sale (AFS) securities). 1 Because FFC usesRead MoreMeasuring Fair Value Accounting Standards1346 Words   |  6 PagesFair Value accounting is a measurement application to value assets and liabilities based on current transactions among buyers and sellers in the market. In other words, the price market participants pay or receive in an orderly transaction at a certain date. There are different techniques for measuring fair values depending on asset and market activity. It includes market approach, cost approach, and income approach. Financial Accounting standards (FAS 157) defines fair value as â€Å"the price that wouldRead MoreHistorical Development Of Fair Value Measurement1400 Words   |  6 PagesFair value measurement is one of the models which provide guidance on how entities should determine the fair value of financial instruments for reporting purposes. This paper discusses the Financial Accounting Standards Board (FASB) Exposure Draft issued on December 3, 2015 which proposed amend ments to Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements. The paper analyzes some of the key points of the exposure draft, among other things, the history andRead MoreThe Impact Of Fair Value On Financial Reporting Essay1529 Words   |  7 Pagestoday’s time in the world of accounting is fair value. However, one common point of confusion is the scale of businesses affected by fair value, and when fair value came onto the scene. According to Robert Herz and Linda MacDonald â€Å"...the use of fair value in financial reporting is not new. In fact, it has been in place for decades, principally for financial assets. But even then, fair value is not required for all assets.† (2008) The idea of using fair value measurements goes back at least to the 1930’sRead MoreFair Value Accounting And Financial Reporting2166 Words   |  9 Pagesreporting and also, the need to have reliable measurements of fair value and its disclosures. The need for reliable information has caused continuous change to accounting policies which has posed a challenge not only to management of companies, but also to auditors. The frequent changes in accounting principles pose a challenge for managers in measuring accounting estimates accurately and are an exceedingly difficult task. Fair value accounting is a financial reporting approach in which companies

The Things They Carried By Tim O Brien - 1067 Words

Every one of us has experienced a strong emotional fear, and in that moment of stress, we learn more about who we are. The short story â€Å"The Things They Carried†, by Tim O’Brien, follows the lives of soldiers trying to survive the emotional and physical stresses of the Vietnam War. Throughout the story, O’Brien juxtaposes the physical weight of the supplies that the soldiers must carry with the immeasurable weight of their intense emotional experiences. The theme of â€Å"The Things They Carried† is the burden of fear, which O’Brien portrays through the counter-weight of objects the soldiers cling to for consolation and escape. Some men turn to objects that remind them of love, no matter how unlikely it is that they are loved back. Other men†¦show more content†¦Love is a powerful force, and Lieutenant Cross sometimes gets lost in his musings while thinking of Martha. O’Brien writes: â€Å"His mind wandered. He had difficulty ke eping his attention on the war. On occasion he would yell at his men to spread out the column, to keep their eyes open, but then he would slip away into daydreams, just pretending, walking barefoot along the Jersey shore, with Martha, carrying nothing.† Like any sane person in his situation, Lieutenant Cross wants to escape – to anywhere else but the war. The war brings terrible experiences – fear, death, hunger, and pain beyond imagination. The only way that Lieutenant Cross can endure these things is by escaping to an imaginary life with Martha. Although to her, he is little more than a friend, to Lieutenant Cross, Martha represents innocence, perfection, and a world free from war. While Lieutenant Jimmy Cross turns to love, other men turn to physical objects they carry for comfort. Henry Dobbins, an overweight man, finds comfort in food. Dobbins greatly enjoys eating food and uses food in the same manner that Lieutenant Cross uses love. No matter what happens each day during the war, as long as Dobbins can carry his pack and survive, at the end of the day he will be able to enjoy peaches in heavy syrup over pound cake. Dobbins also carries a heavy M-60 machine gun with extra ammo, for when the

Childhood Is the Happiest Time of a Persons Life free essay sample

Childhood is the happiest time of person’s life. As adult, we are usually happy on certain occasions such as when we get increase in salary or get present on our birthday. Anyway, do you still remember what time when we could be happy every day? Many people argue that childhood is time when we could be cheerful every day. Personally, I agree with the statement that childhood is the happiest time of persons life. There are some points to support my opinion. First of all, children dont have responsibility like adults do. As adult, we have many responsibilities. For example, as a husband and father, we have to provide basic needs for our family such as food, house, education and other needs. For this reason, we are required to work to collect money to meet these necessities. On the other hand, children are not necessary to think and to do this because parents will give all they need. We will write a custom essay sample on Childhood Is the Happiest Time of a Persons Life or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Another point is there are parents who always take care of children all the time. Parents always keep their eye on their children’s safety. Thats why children are not afraid to do anything and to try something new no matter it is dangerous. They dont care about anything they do because they dont know its consequences and they believe that their parents will always save them. For example, we sometimes see children feel happy play with fire even though it is dangerous. In contrast, adult will always consider any impacts if they want to do something because they have to take care themselves and to be responsible for their actions. Moreover, children expectations are simple and limited compare to adults’. To be happy, children only need friends, toys and place to play. It is different with adults who are always not satisfied with all they have had. They always expect more than all are already in their hands . For example, having a small house is still not enough so that they want a bigger one. Also, after they could buy a car, they also want to buy another car. In career, when they have got job, they want to have a higher position. They also want to be acknowledged by other people, or in other words they need â€Å"self-actualization†, the highest need as mentioned in Maslow’s Hierarchy of Needs. So, adults always expect more and more every time. To sum up, nothing compare to childhood because children have no responsibility and they expect little compare to adults.

White Privilege And The Black Man Essay Example For Students

White Privilege And The Black Man Essay White privilege is not something that anyone asked for or that anyone tried to get. People hate white people because of â€Å"white privilege† which is not really important or even relevant anymore. I am white so some might say that I don’t think white privilege is a thing because I am spoiled and don’t care about anyone because I am white, but that is not true I live in an area where it is mostly black people and Mexicans and if I try to apply for a job and one of them apply for the same job they will get the job. If a black man and a white man both were try to be doctors for example and the black man had a doctoral degree and excelled at what he did and the white man had a doctoral degree and was lazy and wasn’t really good at what he did obviously the black man is going to get the job, not because what his skin color is but by what he has to offer. I cannot even count how many times I applied for a job and they made me check a box to tell them my race a nd every time white is the last thing you can pick and then I don’t even get the job because they need to be more culturally divers and want to hire someone that is not white. We will write a custom essay on White Privilege And The Black Man specifically for you for only $16.38 $13.9/page Order now Last time I checked I was Italian, Irish, and polish there’s diversity for you because white is a color not a race, but im considered white and I don’t understand how anyone is white no one’s skin is white we do not walk around looking like a bunch of ghost. Black is also just a color not a race black people are brown and they all are something else whether they are African, Noriegan, etc.. In the arts of the contact zone by Mary Louis Pratt she talks about people from different races coming together to form one which a lot of work places and even schools want to enforce when they are limiting chances for. .ey are avoiding awkward situations and feeling uncomfortable. Everyone is raised a certain way so if you hate someone for being the way they are you should hate their grandparents because they raised their parents who raised them so think again before you hate someone because the way they see people. Racist is a word that is thrown out their all the time without any acknowledgement of what it means. Everyone thinks being racist means not talking to someone because they are not the same skin color. It really means when someone thinks they are better than someone else because they are a certain skin color. Peggy McIntosh said â€Å"I was taught to see racism only in individual acts of meanness, not in invisible systems conferring dominance on my group.† Which shows that people view it so many different ways in my opinion no one is racist everyone just has their own opinions.