The company I chose was Microsoft. Its' stock ticker is MSFT, and
they are in the technology industry. They are an American
multinational technology corporation which produces computer
software, consumer electronics, personal computers, and related
services headquartered at the Microsoft Redmond campus located in
Redmond, Washington, United States.
From their balance sheet, I have picked their cash and cash
equivalents, which in June 2021 totaled (in millions) $116,110 and in
September 2021 (in millions) $111,450. In their fair-value
measurements section of their website, they state "inputs are based
upon quoted prices for similar instruments in active markets, quoted
prices for identical or similar instruments in markets that are not
active, and model-based valuation techniques (e.g. the Black-Scholes
model) for which all significant inputs are observable in the market or
can be corroborated by observable market data for substantially the
full term of the assets or liabilities." (Microsoft, 2013). Their valuation
policies seem like the most appropriate given the size of the
company and its' product line, and there is no need for an alternative
approach in that regard.
References:
Financial Review. Accounting Policies. (n.d.). Retrieved July 7, 2022,
from https://www.microsoft.com/investor/reports/ar13/financial-
review/notes/index.html
Microsoft. (n.d.). Retrieved July 7, 2022,
from https://www.microsoft.com/en-us/Investor/earnings/FY-2022-
Q1/balance-sheets
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