Subject: •Corporate Accounting and Reporting TOPIC assignment: •Explain the Accounting Standard on Fair Value Measurement Assignment: • XXXXXXXXXX% word theory interpretation essay •Arial font 12 •at...

Corporate Accounting and Reporting
Corporate Accounting and Reporting
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Contents
Introduction    3
Accounting Standard on Fair Value Measurement    4
Conclusion    8
References    9
Introduction
Since the disclosure of the fair value report of the IASB, the subject has been debated hotly by the industry outlook and professionals in the world's accounting fraternity. Many problems and traps were highlighted in the context of "mark to market". For example, Richard HG Jackson and David Gwilliam (2008) noted that Enron was capable to completely monetize the "physical assets for accounting market accounting", which envisages depreciation of the fair value. Fair Value is a market-based measurement, not a factor-specific measurement (Abbott and Tan-Kantor, 2017). There may be market transactions or market information for certain liabilities and assets. Market operations and market information are not available for other assets and liabilities. However, in any case, the market shareholder is responsible for managing the order of sale of property, or on the date of market availability available to the transfer of liability (e.g., the participant's approach that possesses assets and liabilities as well as the exit price on the measurement date). When an asset or liability cannot be measured, an entity measures fair value using the other valuation method that completely maximizes the usage of the valued estimate as well as minimizes the usage of unexpected inputs. This is because the fair value is the market-based assessment; market participants measure their risk assumptions using the assumptions about the asset and liability. Consequently, the intent of the entity to maintain an asset or to settle the obligation or to settle it in a different manner is not necessary for measuring the fair value.
Accounting Standard on Fair Value Measurement
The FASB issued the Financial Accounting Standards Statement No. 157: Fair Value Measurement ("FAS 157") in 2006 to give guidance on how entities decide fair value estimates for the financial reporting aims. FAS 157 are widely applicable to financial and non-financial liabilities and assets measured at fair value based on other dependable accounting announcements. However, applications for non-financial assets and liabilities were postponed until 2009. In the absence of a quotation, the lack of a single reliable framework to apply fair value measurements moreover the development of reliable estimates of fair value creates inconsistencies and incomparability (Cheng, 2012). The goal of the framework is to eliminate the inconsistency between the balance sheet (historical cost) figures and the income statement (fair value) figures. The framework uses level thee fair value hierarchies to reflect the judgment level involved in an estimating fair value. The...