Main changes to a principle or requirement for measuring lair value or disclosing fair value
information relate to financial instruments managed within a portfolio: the use of premiums or discounts; and additional disclosures.
Because the fair value
of a GIK is determined when it is contributed to an NFP, it is important to determine when a contribution occurs.
Additionally, the methodology for measuring fair value
is nearly identical under both sets of standards, and fair value
disclosure requirements are largely the same.
When the indemnifying party (or guarantor) is not legally obligated (under the tax law) to pay taxes covered by an indemnification agreement, FIN 45 may apply to require the guarantor to recognize a liability for the fair value
of the guarantee at inception.
If markets were liquid and transparent for all assets and liabilities, fair value
accounting clearly would be reliable information useful in the decisionmaking process.
It provides an understanding of the topic, concrete practical guidance, and support for those who wish to implement fair value
measurements and fair value
Consideration that includes share-based payment awards resulting from the acquirer's obligation to replace share-based payment awards of the acquiree is measured at the fair value
of the acquirer's replacement award.
The first quarter of 2008 is likely to usher in the first significant wave of financial statements from companies that have adopted FASB's new fair value
option for financial assets and liabilities.
is determined to be a market-based measurement, and the standard sets up the hierarchy for determining the fair value
based on "observable" inputs (ready markets, etc.
Opinion is split on whether fair value
will be the chosen standard.
Company A designates the swap as a fair value
hedge of its fixed-rate asset.
Since fair value
accounting methods and assumptions will vary," said Tim E.