Accounting

Running head: FAIR VALUE MEASUREMENTS

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Part 1
a)The collar alternative accounting system treatments for the classification of monetary assets and for the recognition of gains and losses arising from changes in handsome apprize permitted by FAS 115

Under FAS 115, fair value is defines as the price that can be have upon disposal or paid to transfer liability by dint of a transaction between buyer and seller at the measurement date. The three alternative accounting treatments for classification of monetary assets and for recognition of gains losses arising from changes in value and permitted FAS 115 be:
i)Assets held to maturity
All the Assets that are held to maturity are cherished at amortized cost. The amortizing method must be consistent and must be one of the given by AASB.
ii)Asset held for trading
On the other hand assets held for trading are marked to market. The win include unrealized gains or losses.
iii)Asset available for sale
likewise assets deemed available for sale are marked to market. The earning excludes unrealized gains or losses but included in shareholders equity.





b)The guidance in FAS 157 for measuring these assets fair values

According to the Financial Accounting Standards carte du jour (FASB) which was nettized on April 9, there is a significant revision on the proposed guideline on valuing financial asset in noneffervescent markets. At this time also there was a final issue guideline on accounting for certain afflicted financial assets and disclosure of fair value on financial statement. There was no any new requirement on fair value measurement but it created a render definition of fair value and that measure fair value under Generally Accepted Accounting Principles (GAAP). FAS 157-4 require accounting treatment of other than temporary impairments of certain debt securities. This guidance was considered a good one...If you want to get a full essay, articulate it on our website: Ordercustompaper.com



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