Question

SFAC No. 7 provides a framework for using future cash flows as a basis for an accounting measurement . Find, cite, and copy the FASB ASC guidance on using present value measurements.

*Please cite which FASB ASC are those from

Answer 1

The following methods and assumptions were used to estimate the fair value of
each class of financial instruments for which it is practicable to estimate that
value:
Cash and short-term investments. For those short-term instruments, the
carrying amount is a reasonable estimate of fair value.
Investment securities and trading account assets. For securities and
derivative instruments held for trading purposes
interest rate futures, options, interest rate swaps, securities sold not owned,
caps and floors, foreign currency contracts, and forward contracts) and
marketable equity securities held for investment purposes, fair values are
based on quoted market prices or dealer quotes. For other securities held as
investments, fair value equals quoted market price, if available. If a quoted
market price is not available, fair value is estimated using quoted market
prices for similar securities.
Loan receivables. For certain homogeneous categories of loans, such as
some residential mortgages, credit card receivables, and other consumer
loans, fair value is estimated using the quoted market prices for securities
backed by similar loans, adjusted for differences in loan characteristics. The
fair value of other types of loans is estimated by discounting the future cash
flows using the current rates at which similar loans would be made to
borrowers with similar credit ratings and for the same remaining maturities.
Deposit liabilities. The fair value of demand deposits, savings accounts, and
certain money market deposits is the amount payable on demand at the
reporting date. The fair value of fixed-maturity certificates of deposit is
estimated using the rates currently offered for deposits of similar remaining
maturities.