In This Chapter
Considering historic cost
Highlighting fair value
Walking through fair value techniques
Thinking about potential marketplaces
Highlighting valuation models
Understanding U.S. and international valuation standards
This chapter gives a brief overview on valuation. It provides a refresher on historic cost while homing in on fair value measurements. I also report on current developments regarding the Financial Accounting Standards Board’s (FASB) long-term goal of having financial assets and liabilities reporting on the balance sheet at fair value (what an unpressured person would pay in an open market place) instead of historic cost.
Assets are resources that a company owns, such as cash, equipment, and buildings. Liabilities are debts the business incurs for operating and expansion purposes.
You also read about various ways to figure and ...