3 Levels of Fair Value Accounting in US GAAP

Fair Value Accounting
Knowledge Center

 

Next Topic

Fair Value Accounting > Forum

Meheresh, Management Consultant, India
🔥NEW Under US GAAP, there are 3 levels applicable to this given standard FAS 157: - Only level 1 can be determined directly by “Mark to market”. - Level 2 and 3 are only modeled (mark to market-model) based on observations etc. The following article is an extract from article "Fair Value Accounting – Fact Or Fancy?" written by Andrew Wagner, California State University, Stanislaus, USA and Don Garner, California State University, Stanislaus, USA in Journal of Business & Economics Research – November, 2010. Fair Value Accounting is intended to represent value rather than historical cash flows and so, presumably, would be preferable to the investor who is primarily concerned with this question. However, the investor is also concerned with risk and transparency and is therefore looking for financial statements with verifiable numbers. This is not a problem with level 1 FVA because everyone agrees on what the price of a given security was at a given time if that security had a quoted p (...) Read more? Sign up for free

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

Sign up for free     Log in


 
More on Fair Value Accounting
Summary
Forum
3 Levels of Fair Value Accounting in US GAAP
Fair Value Equation
Special Interest Group Leader

Are you an expert in Fair Value Accounting? Sign up for free


Fair Value Accounting
Knowledge Center

 

Next Topic



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2020 12manage - The Executive Fast Track. V15.6 - Last updated: 21-9-2020. All names ™ of their owners.