Fair value accounting continues to be one of the most complex and difficult areas of accounting to implement. The FASB also continues to clarify how its guidance should be applied, as evidenced by the pronouncements issued over the years dealing with fair value application. This course provides a conceptual and practical review of fair value accounting in the context of FASB ASC 820, Fair Value Measurement, and its application to other U.S. accounting standards. The course shows you how to apply the process of measuring the fair value of specific assets and liabilities and includes practical examples and a comprehensive case study. In short, the course can serve as a review of fair value measurements and disclosures under the authoritative guidance provided in FASB ASC 820 and other U.S. accounting standards.

Major Topics:

  • FASB ASC 820, Fair Value Measurement
  • Key terminology in applying fair value
  • Identification of assets and liabilities to which fair value applies
  • The process used to measure fair value
  • Valuation techniques
  • The fair value hierarchy
  • Fair value disclosures
  • The fair value option
  • Practical application of fair value accounting concepts

Learning Objectives:

  • Define “fair value” and review terminology and concepts applicable to fair value accounting
  • Identify and apply valuation techniques consistent with the market approach, the income approach, and the cost approach used to measure fair value
  • Understand and apply the fair value hierarchy established in FASB ASC 820
  • Examine the expanded fair value disclosure requirements outlined in FASB ASC 820
  • Review the fair value option
  • Apply the concepts of fair value accounting through examples and a comprehensive case study

Designed For: Practicing CPAs and accounting professionals in business and industry that prepare or review financial statements
Level of Knowledge: Intermediate
Prerequisite: Basic understanding of accounting principles
Advanced Preparation: None
Credits: 8