Wiley Practitioner's Guide to GAAP 2022

51ASC 820 FAIR VALUE MEASUREMENTS

• Perspective and Issues
  • Subtopic
  • Scope Exceptions
    • Practicability Exceptions
    • Fair Value Measurements of Investments That Calculate Net Asset Value per Share
  • Overview
    • ASC 820, Fair Value Measurement
• Definitions of Terms
• Concepts, Rules, and Examples
  • Initial Measurement
  • Subsequent Measurement
    • The Elements of the Fair Value Definition
    • The Measurement Process
    • Step 1: Identity the Item to Be Valued and the Unit of Account
    • Step 2: Determine the Transaction Assumptions
    • The Principal or Most Advantageous Market and the Relevant Market Participants
    • Step 3: Determine the Characteristics of the Market Participants
    • Step 4: Identify the Price
    • Step 5: Select the Valuation Premise for Nonfinancial Asset Measurements
    • Step 6: Apply Fair Value to Liabilities and Instruments Classified in the Reporting Entity’s Shareholders’ Equity
    • Liabilities and Instruments Classified in Equity Held by Other Parties
    • Liabilities and Instruments Classified as Equity Not Held by Other Parties
    • Nonperformance Risk
    • Step 7: Apply Fair Value to Financial Assets and Financial Liabilities with Offsetting Positions in Market Risk or Contingency Credit Risk
  • Valuation Techniques
    • The Market Approach
    • Income Approaches
    • Cost Approaches
    • Things to Consider When Using the Approaches
  • Inputs
  • Fair Value Hierarchy
    • Level 1 Inputs
    • Level 2 Inputs
    • Level 3 Inputs
  • Measuring Fair Value When There Has Been a Significant Decrease in Volume or Level of Activity
    • Present Value Techniques—Riskand ...