Fair Value Case Essay

Words: 1928
Pages: 8
Open Document
Case 11-2(b)
Fair Value Disclosures
Case 11-2(b) is an extension of Case 11-2(a). For this case, assume that the Case 11-2(a) facts remain, with the exception of the additional assumptions listed below for each security. As stated in Case 11-2(a), Family Finance Co. (FFC) accounts for its investments at fair value, with changes in fair value reflected either in earnings (for trading securities) or other comprehensive income (OCI) (for available-for-sale (AFS) securities). 1 Because FFC uses the interest rate swap in a cash-flow hedge, FFC measures the derivative at fair value, presenting the portion of the fair value change that effectively offsets cash flow variability on its corporate debt in OCI and the remainder in earnings. …show more content…
Use blank table formats 1a and 1b below to complete the required quantitative disclosures. (Note that participants are also required to identify the classes of assets and liabilities to include in Tables 1a and 1b.) o For assets and liabilities measured at fair value by means of significant unobservable inputs on a recurring basis, a reconciliation of the beginning and ending balances (i.e., annual table) separately for each class of assets and liabilities, including where the gains or losses included in earnings are reported in the income statement. Use blank table format 2 below to complete the required quantitative disclosures. (Note that participants are also required to identify the classes of assets and liabilities to include in Table 2.) o For certain assets and liabilities measured at fair value, (1) the amount of the total gains or losses for the period included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held as of the reporting date (i.e., December 31,
2012) and (2) a description of where those unrealized gains or losses are reported in the income statement. Use blank table format 2 below to complete the required quantitative disclosures. o For assets and liabilities measured at fair value by means of significant unobservable inputs, quantitative information about the significant
Show More

Related Documents: Fair Value Case Essay

Weather Or Not ARO Should Be Recognized In All Three Situations

410-20-55-11 it is required that these cases initially recognize a conditional asset retirement obligation based on all the facts about the asset that are currently presented. These conditions are then compared with four cases that illustrate when an entity would be required to recognize the fair value of an ARO. The two disadvantages of these method is that any differences in the facts from those presented in the cases results in different conclusion and the cases do not provide specific guidance for…

Words 890 - Pages 4

Fasb Codifcation Essay

Hence, the best evidence of fair value is the orderly market transactions. The valuation of fair value is the quoted prices in active markets for identical assets or liabilities, and the entity must have access to an active market for the item being valued. In the case the quoted market price is not available, accountant should make an estimate of fair value using the best information available in the circumstances. Fair value can be estimated based on market observables, it…

Words 896 - Pages 4

Balance Sheet and Total Capital Ratio Essay

4、(1)Assume Citigroup experiences countinuing losses in its trading account in 1Q 2008, requiring a fair value decrease of $50 billion (net of tax). Dr. Net income 50b Cr. Trading account assets 50b Dr. Retained earnings 50b Cr.Net income…

Words 995 - Pages 4

Fasb Asc 718-10 Codification Case

Codification Research Case The authoritative literature that addresses the accounting for share-based payment compensation plans is elaborated in the FASB Codification at FASB ASC 718-10 The objectives for the accounting for stock compensation is mentioned in the FASB ASC 718-10-10. According to the FASB ASC 718-10-10: 10-1 The objectives of accounting for transactions under share-based payment arrangements with employees is to recognize in the financial statements the employee goods…

Words 1049 - Pages 5

Essay about Eagle Impairment Case Study

ACTG 351 Eagle Impairment Case Due: Wednesday, May 4 (at the beginning of class). Also, please be prepared to discuss the case and your solution in class on this date. Required: Refer to the current, relevant accounting guidance to answer the four questions of the case. Please make particular note about whether the question is asking you to use U.S. GAAP, IFRS, or both. Groups: For this case, you will work in groups of two or three students. I will let you pick your group if you prefer, but…

Words 1307 - Pages 6

Disney Case Essay

Disney Case Page 627 a. Disney is already known for its multiple characters such as Mickey Mouse, Princesses and so on and how successful they are along the years. From a strategic perspective Disney will make this acquisition because they will get revenue not just from movies but also from videos games, advertising and licensing from the Marvel characters for years to come. The videos game sector will be big revenue for Disney knowing that Marvel has over 5000 characters (Captain America and Iron…

Words 470 - Pages 2

Essay about Volkswagen Adopt IAS

Accounting and financial statement] Case 2 “Volkswagen Group” Questions and Answers 1. Based on the information provided in the chapter, describe the basic features of German accounting at the time Volkswagen adopted IAS. What development factors cause these features? APPUNTI DA FARE IAS compliant In 2001 first consolidated financial statement All mandatory requirements fulfilled IAS 12 and IAS 39 already fulfilled in 2000 financials Clear and fair view of net financial positions, asset…

Words 1152 - Pages 5

Essay about Gators Electronic

goodwill impairment analysis as of December 31, 20X3, with the assistance of an external valuation specialist, Management’s Expert. Gator elected not to perform the qualitative assessment for determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount and proceeded with Step 1 of the quantitative two-step goodwill impairment test for all reporting units. On the basis of…

Words 1423 - Pages 6

Negotiation, Bargaining, and Conflict Management Essay

Learning Exercise: Withholding Information Case Sonia Y. Quiles PPA605: Negotiation, Bargaining & Conflict Management Instructor: AJene Maxwell November 11, 2013 Abstract Parties involved in negotiation tend to use various tactics to derail direction of negotiation process. Negotiation involves two parties that are seeking to reach an agreement. In most either party tend to use tactics for their own interest. One of these tactics is withholding information. In…

Words 1785 - Pages 8

Uniform accounting standards produce uniform financial reporting. Discuss and evaluate the above statement in the context of the International Financial Reporting Standards (IFRS) Essay

(International financial reporting standards) has indeed helped the uniformity of financial reporting. However, in some cases due to subjectivity involved, created by human judgment, the financial information reported may not be uniform. Furthermore the various methods permitted by the IFRS for the…

Words 1080 - Pages 5