Article,
The Finer Points of Fair Value.
Journal of Accountancy, 204 (6): p58 - 61 (20071201)
Abstract
* To adopt FASB Statement no. 159, companies must comply
with the requirements of Statement no. 157, Fair Value Measurements. *
Companies and their auditors must consider whether the use of fair value
option accounting reflects a "substance over form" decision by
management rather than an effort to gain an accounting result. * FASB
has raised the bar for disclosure required when the fair value option is
in play so that financial statement users will be able to clearly
understand the extent to which the option is utilized and how changes in
fair values are being reflected in the financial statements. * Companies
are encouraged but not required to present the fair value option
disclosures in combination with the fair value disclosures required in
other accounting literature. * The guidance must be implemented on an
instrument-by-instrument basis and is irrevocable. ABSTRACT FROM
PUBLISHER Copyright of Journal of Accountancy is the property of
American Institute of Ceritified Public Acco
