Learning Objectives
By the end of this module, you will be able to:
Differentiate between fair value and market value for determining
appropriate use
Assess fair value reporting for its impacts in relation to relevant
regulations
Module at a Glance
This is the recommended plan for completing the reading assignments and
activities within the module. Additional information can be found in the
module Reading and Resources section and in the task list.
Review the required readings.
Post an initial post in module discussion and respond to two peers.
Reading and Resources
Fair Value Under Fire
As you read, consider the following:
Fair value violates the cost principle but gives a better approximation
of available cash. Which aspect is more useful to management,
lenders, and investors?
Fair value includes unrealized gains/losses in income. Is it reasonable
to include amounts such as this, which are outside of management’s
control?
IFRS Standards
Review the IFRS standards as they relate to fair value.
FASB Standards
Review the IFRS standards as they relate to fair value.
