ASC 820 the Basics of Fair Value Accounting

Learning Objectives

• To recall when entities can elect and are required to use the fair value option
• To discuss the ASC 820 guidance on accounting and reporting for business.
• To identify how to determine the fair value of assets and liabilities under the ASC 820 fair value approach
• To identify appropriate inputs to use when determining the fair value of an asset or liability
• To determine the difference between “best use” and other markets.
• To describe transfers between Levels of inputs

Course Description

Do you feel that fair value is everywhere in the world of accounting?

All right, that may be a bit of an exaggeration, but it is one of the most widespread accounting concepts as there are many items throughout U.S. GAAP and International Financial Reporting Standards (IFRS) that are required to be measured at fair value, in accordance with ASC 820.

Entities now need to apply fair value accounting under ASC 820 across a variety of transitions. From financial instruments to leases, business combination accounting and impairment measurement, GAAP either requires or allows the use of fair value measures in an ever-increasing number of circumstances. Now is the time for you to get up-to-speed on the basics of the fair value approach. In this online CPE course, we will review when fair value accounting is required and when an entity can select to use it. Then we will review the basics of the ASC 820 model, including the concept of “exit price,” the various approaches which an entity may follow when using a fair value approach and the different levels of inputs which an entity may consider when determining fair value. Lastly, the online CPE course will provide examples on when and how to apply this complex accounting guidance.

This online CPE webinar will also discuss about the amendments to ASC 820 that are the result of the work by the FASB and the IASB to develop common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRSs).

The amendments explain how to measure fair value. They do not require additional fair value measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting.

This online CPE course on accounting will explain the change the wording used to describe the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements.

Major topics covered in this online CPE webinar:

• Valuation techniques.
• The 3 levels of inputs.
• Valuation concepts.
• Allowable exceptions.
• Asset markets.
• Presentation requirements.
• Disclosure requirements.
• The commonalities of ASC 820 and IFRS 13.

To help you master fair value measurement accounting, this CPE webinar will serve as a resource guide, bringing together a compilation of fair value measurement accounting issues, references, and useful content on the topic.

Overview

• Who is affected by the amendments in this update?

  5 mins
• Application of fair value

  15 mins
• How do the provisions compare with international financial reporting standards (IFRS)?

  24 mins
• Relationship between measurement and presentation

  44 mins
• Fair value measurement of investments without a readily determinable fair value

  60 mins
• Change in valuation technique

  78 mins