GAAP gave the option to entities to: Measure most financial assets and liabilities at fair value, and Report unrealized gains and losses in earnings The decision of whether to elect the fair value option is made irrevocably at an election date. The decision is made instrument by instrument The fair value option need not be […]
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GAAP establishes a framework for fair value measurements (FVMs) required by other pronouncements. Accordingly, they Define fair value Discuss valuation techniques Establish a fair value hierarchy of inputs to valuation techniques, and Require expanded disclosures about FVMs Fair value is the price that would be received to sell an asset or paid to transfer a […]
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