Fair Value Accounting & Reporting Webinar

To provide CPAs and other financial professionals with the most current understanding of this complex topic. You will learn the principles put forth by FASB in relation to the concept of fair value, as well as their practical application.

• Why is Fair Value So Important?
• Fair Value Valuation Techniques
• Scope
• Fair Value Hierarchy
• Five Step Framework
  – Determine:
     – Unique attributes
     – Valuation premise
     – Best market
     – Appropriate valuation techniques
     – Fair value
• Fair Value Option Per ASC 825
• Topic ASC 820 Disclosures
• Management & Auditor's Role in Fair Value Measurement
• Significant Differences from IFRS 13
• Best Practices for Measuring Fair Value of Intangible Assets
• Authoritative Standards Requiring Financial Assets & Liabilities to Be Measured:
  – Business combinations
  – Goodwill impairment testing
  – Nonmonetary exchanges

To provide CPAs and other financial professionals with the most current understanding of this complex topic. You will learn the principles put forth by FASB in relation to the concept of fair value, as well as their practical application.

DETAILED LEARNING OBJECTIVES

• Understand the definition of fair value as outlined in ASC 820 and its application in financial reporting

• Identify the characteristics of orderly transactions and the principal market in fair value measurements

• Understand the concept of "highest and best use" (HABU) and its role in maximizing the value of nonfinancial assets

• Differentiate between market participants' perspectives and entity-specific assumptions in determining fair value

• Categorize inputs into Levels 1, 2, and 3 based on their observability and use in fair value measurement

• Evaluate the reliability of Level 1 inputs, such as quoted prices in active markets, and their significance in fair value hierarchy

• Recognize the use of Level 2 inputs, including adjustments for similar assets or liabilities, and their limitations

• Describe the role of Level 3 inputs, including unobservable data and management assumptions, in fair value estimates

• Apply the three primary valuation techniques: market, income, and cost approaches

• Analyze the use of the market approach in leveraging comparable market data for valuation

• Explain the income approach, including discounted cash flow methods and their reliance on future cash flow projections

• Utilize the cost approach to measure value based on replacement cost while considering obsolescence

• Understand specific methods like the relief-from-royalty and multi-period excess earnings methods for valuing intangible assets

• Explain the portfolio exception under ASC 820, allowing for net basis measurement of financial instruments managed collectively

• Identify financial instruments eligible for the portfolio exception and its implications for fair value reporting

• List the required disclosures for fair value measurements, including inputs, valuation techniques, and sensitivity analysis for Level 3 measurements

• Understand the NAV practical expedient and its reporting requirements for investments without readily determinable fair values

• Discuss the importance of disclosing unobservable inputs and changes in fair value rollforwards for Level 3 assets and liabilities

• Identify risks associated with fair value measurements, including bias, measurement uncertainty, and reliance on assumptions

• Understand the significance of PCAOB standards for auditing fair value estimates and addressing deficiencies in accounting practices

• Apply advanced valuation methods, such as multi-period excess earnings and relief-from-royalty, for specific asset categories

• Assess the role of obsolescence in the cost approach and its impact on fair value measurement

• Recognize the relationship between risk and discount rates in valuation techniques, especially the income approach

• Prioritize observable inputs over unobservable inputs to enhance transparency and reliability in fair value measurements

• Reconcile differences in valuation results from multiple techniques to select the most representative fair value estimate
 

• Why is Fair Value So Important?
• Fair Value Valuation Techniques
• Scope
• Fair Value Hierarchy
• Five Step Framework
  – Determine:
     – Unique attributes
     – Valuation premise
     – Best market
     – Appropriate valuation techniques
     – Fair value
• Fair Value Option Per ASC 825
• Topic ASC 820 Disclosures
• Management & Auditor's Role in Fair Value Measurement
• Significant Differences from IFRS 13
• Best Practices for Measuring Fair Value of Intangible Assets
• Authoritative Standards Requiring Financial Assets & Liabilities to Be Measured:
  – Business combinations
  – Goodwill impairment testing
  – Nonmonetary exchanges