CCH Learning Center

FASB 157: Fair Value Measurements

FASB 157: Fair Value Measurements defines fair value and establishes a framework for measuring fair value as used in GAAP. The Statement also expands disclosures about fair value measurements.

Upon completing this course, the learner will be able to:

• Make a distinction between the historical cost accounting model and the fair value accounting model, noting the advantages and disadvantages of each
• Determine when FASB No. 157 should be applied
• Define the term “fair value”
• Explain the assumptions of fair value measurement
• Define “transaction costs” and “transport costs”
• Describe the three valuation approaches used to determine fair value
• Differentiate between observable inputs and unobservable inputs
• Categorize inputs using the fair value hierarchy
• Apply disclosure requirements per FASB No. 157