Fair Value Developments

Slides:



Advertisements
Similar presentations
Teaching Fair Value Measurement
Advertisements

Fair Value Measurements
Statement 157 Measuring the Fair Value of Financial Assets
©2009 KPMG LLP, the U.S. member firm of KPMG International, a Swiss cooperative. All rights reserved. 1 Business Combinations: What you need to know about.
FASB UPDATE FOR PRIVATE COMPANIES Timothy Pike, CPA, CFE Howard & Co, LLP.
1 FASB’s MOVE TOWARDS FAIR VALUE AND ACADEMIC RESEARCH Derivatives Contingencies Financial instruments Stock Options – 123R Guarantees – Int. 45 Fair value.
IAS 8 - Accounting changes and errors. Academic Resource Center Accounting changes and errors Page 2 Executive summary ► Both IFRS and US GAAP have similar.
International Financial Reporting Standards The views expressed in this presentation are those of the presenter, not necessarily those of the IASB or IFRS.
Chapters 1 & 2 Financial Accounting and Accounting Standards and Conceptual Framework for Financial Reporting ACCT
Theoretical Structure of Financial Accounting
Intermediate Accounting I - Fall Session 3 Accounting Assumptions and Principles Balance Sheet Wrap-up The Complete Income Statement Separately.
*connectedthinking  Discussion Paper Preliminary Views on Insurance Contracts Sabine Wuiame.
FAS 157 And Fair Value Disclosures Acct 592. Materials & Labor Markets Manu- facturer Wholesale Market Dealer Retail Market Consumer 2 nd Hand Market.
Page 0©2009 Clark Nuber. All rights reserved New Guidance on Accounting for GIK at Fair Value AERDO Conference December 7, 2009 Andrew Prather CPA Clark.
ST Convergence with IASB
Fair Value Measurement
Financial Instruments: Impairment. 2 © 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent.
Fair Value Measurement (SFAS 157)
International Financial Reporting Standards The views expressed in this presentation are those of the presenter, not necessarily those of the IASC Foundation.
© 1 Fair Value Measurements SFAS What Does SFAS 157 Accomplish? Defines fair value Establishes a framework for measuring fair value in GAAP Expands.
International Financial Reporting Standards The views expressed in this presentation are those of the presenters, not necessarily those of the IASB or.
IFRS 1 FIRST TIME ADOPTION OF IFRS Asish K Bhattacharyya Slide 1.
Technical Update Mark Thomas, Partner KPMG LLP April 24, 2015.
The views expressed are my personal views and do not represent positions of the FASB. Positions of the FASB are arrived at only after extensive due process.
Auditing Fair Value Measurements. 2 General Challenges presented to auditors:  Obtain a sufficient understanding of the entity’s processes and relevant.
Conceptual Framework u By the end of this class you should be familiar with …. u Activities of the firm u Major items in the Balance sheet and Income Statement.
Introduction to Financial Statements Prepared with IFRS 1.
LKAS 8 Accounting Policies Changes in Accounting Estimates and Errors
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
FIRMA National Conference New Orleans 2009 FAS 157 Michael Daly VP Risk Management and Quality Control Union Bank of California.
Concepts - 1 The FASB’s Conceptual Framework of Accounting.
© Grant Thornton LLP. All rights reserved. FASB Statement 157: Fair Value Issues Impacting Financial Services Webcast Wednesday, February 27 th, 2008 The.
ACC 424 Financial Reporting II Lecture 13 Accounting for Derivative financial instruments.
March 31, 2008 Glen Hecht, Senior Manager, Ernst and Young Fair Value Measurement.
2006 Seminar for the Appointed Actuary Colloque pour l’actuaire désigné Seminar for the Appointed Actuary Colloque pour l’actuaire désigné 2006.
Chapter 2-1 Conceptual Framework Underlying Financial Accounting Conceptual Framework Underlying Financial Accounting Chapter2 Intermediate Accounting.
FASB Update Baruch College Financial Reporting Conference May 3, 2007 Leslie F. Seidman The views expressed in this presentation are my own and do not.
FRAMEWORK FOR FINANCIAL REPORTING
ACTG 3110 Chapter 2 – Conceptual Framework Underlying Financial Accounting.
11 Making Informed Judgments Part 10 Statistics, Measurement, and the Fair Value Hierarchy Navigating Accounting, ® G. Peter & Carolyn R. Wilson, ©
Fair Value Measurement By: Feras Alghamdi Shawneen Kelly Austin Tullos Meredith Whitaker.
Page 1 | Confidential and Proprietary Information Agenda Item 4: Conceptual Framework: Overview of Sessions John Stanford, Deputy Director IPSASB Meeting.
ICPAK The Financial Reporting Workshop Comfy Hotel, Eldoret November 10, 2014 Fair Value Measurement- IFRS 13.
2007 Annual Meeting ● Assemblée annuelle 2007 Vancouver 2007 Annual Meeting ● Assemblée annuelle 2007 Vancouver Canadian Institute of Actuaries Canadian.
Copyright © 2011 Thomson South-Western, a part of the Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.
Financed by a grant from Switzerland through the Swiss Contribution to the enlarged European Union Poland Financial Reporting Technical Assistance Program.
International Financial Reporting Standards The views expressed in this presentation are those of the presenter, not necessarily those of the IASB or IFRS.
Fair Value Definition Price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.
1 NCREIF Accounting Update Dan Clemmens October 12, 2006.
Copyright © 2011 Thomson South-Western, a part of the Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.
ICPAK Presentation By CPA Anthony Muthee Njiru
Accounting for Financial Instruments
Chapter 2 Asset and Liability Valuations and Income Recognition.
Real Estate Institute of Zimbabwe
IFRS 4 Phase 2 Insurance Contract Model
FASB Targeted Improvements
Insurance IFRS Seminar December 2, 2016 Chris Hancorn Session 32
Insurance IFRS Seminar December 2, 2016 Bill Horbatt Session 33
Environment and Theoretical Structure of Financial Accounting
Section 28 Employee Benefits
Preparing for Fair Value
CONCEPTUAL FRAMEWORK UNDERLYING FINANCIAL ACCOUNTING
Fair value measurement
Accounting for Changes in Prices
GODFREY HODGSON HOLMES TARCA
Quiz: Assets: fair value measurement
Fair value measurement
Financial Accounting Standards Board
Mensuração de Valor Justo
IFRS 9 – Financial Instruments
Presentation transcript:

Fair Value Developments Baruch College Financial Reporting Conference May 3, 2007 Leslie F. Seidman The views expressed in this presentation are my own and do not represent positions of the Financial Accounting Standards Board. Positions of the FASB Board are arrived at only after extensive due process and deliberations.

Statement 157, Fair Value Measurement Issued September 2006 Objective: Clarify definition and premise of “fair value” when another standard currently requires or permits fair value measurement The price that would be received for an asset or paid to transfer a liability in a transaction between market participants at the measurement date. Simplify GAAP by using the same principle for fair value when it is currently required or permitted.

Fair Value Measurement (cont’d) Fair value hierarchy: prioritize observable/ market data and inputs in approaches Level 1—unadjusted quoted prices in active markets for identical items Level 2—observable inputs (prices for similar items, rates, etc.) for the item, including market-corroborated inputs, that might need adjustment Level 3—entity’s own assumptions about assumptions a market participant would use, developed based on best info available without undue cost and effort

Fair Value Measurement (cont’d) Expanded disclosure about the use of fair value in financial statements, organized by level in hierarchy Emphasis on Level 3: reconciliation of balances for items being remeasured and disclosure of unrealized gains and losses in P&L

Fair Value Measurement (cont’d) Major changes in practice Emphasis on exit price and market participant view (e.g., private equity) Liabilities include entity’s own credit risk (e.g., derivatives) Block discounts not permitted (PxQ) Include restrictions if they are an attribute of the asset (generally decreases FV) Rescinds fn 3 of EITF Issue 02-3 (dealers could recognize upfront g/l, but amounts should reflect market-based “risk adjustment” for uncertainty in inputs)

Fair Value Measurement (cont’d) Effective for fiscal years beginning after November 15, 2007; early adoption OK Transition is generally prospective However, block discount and EITF Issue 02-3 adjustments (including hybrids) have limited retrospective adjustments through retained earnings

Valuation Initiatives Invitation to Comment, Valuation Guidance for Financial Reporting (January 2007) Seeks input on the need to develop valuation standards for use in financial reporting If so: What type of items need valuation guidance? Who should develop it? Is it a temporary or ongoing need? Comments due April 15, 2007 Roundtable held April 30, 2007

Conceptual Framework Project: Measurement Phase Develop a concept on how to select a measurement attribute for a particular transaction or event Currently, identifying existing types of measurements and grouping them as “current” and “historical/cost” Evaluate them against the qualitative characteristics (relevance, reliability, etc.) Develop concept for how to decide in future standards Public discussion sessions held in January ’07 Focus on “nearness to cash” and “business activity” NOT a stealth effort for Fair Value of Everything!