Question

Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org) 

 

Required: 

1. Identify the Codification topic number that provides guidance on fair value measurements. 

2. What is the specific seven-digit Codification citation (XXX-XX-XX) that lists the disclosures required in the notes to the financial statements for each major category of assets and liabilities measured at fair value?

Answer 1

The Development of Financial Accounting and Reporting Standards

To facilitate comparison of financial information among companies, the Generally Accepted Accounting Principles (GAAP), an accounting standards setting body has put forth accounting guidelines based on accrual system of accounting.

 

1.

From the website of the FASB (Financial Accounting Standards Board), following Accounting Standards Codifications are noted that provide guidance on fair value measurements.

 

FASB ASC 820: “Fair Value Measurements and Disclosures.”

 

2.

Following is the specific citation of the Accounting Standards Codifications that lists the disclosures required in the notes to the financial statements for each major category of assets and liabilities measured at fair value.

 

FASB ASC 820-10-50-2: “Fair value measurements and disclosures-Overall-Disclosures.”

FASB ASC 820-10-50-2: “Fair value measurements and disclosures-Overall-Disclosures.”