Fair Value Option for Financial Instruments (ASC Topic 825)
Author: James F. Green, CPA
| CPE Credit: |
1 hour for CPAs |
This course introduces you to an option in generally accepted accounting principles (GAAP) that allows an entity to elect fair value measurement for certain financial instruments and other items.
Publication Date: March 2019
Topics Covered
- Reason for the Fair Value Option
- Hedge Accounting
- Effects Beyond Fair Value Measurement
- What is a Financial Instrument?
- Which Items Qualify for the Fair Value Option
- What is a Firm Commitment?
- When and how is a Fair Value Option Election Made?
- Disclosures
Learning Objectives
- Explain why GAAP provides an option to measure certain items at fair value
- Identify the definition of a financial instrument
- List the items that qualify for the fair value option
- Identify when and how an entity may elect the fair value option
- Recognize the objectives of an entity's disclosures about electing the fair value option
- Identify the disclosure requirements
- Recognize changes specific to the fair value option on account of recent ASUs
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Accounting (1 hour)
Program Prerequisites
None
Advance Preparation
None
