Statement of Financial Accounting Standards No. 157 - Paper Audit ...

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the fair value of the services received or the fair value of the asset or of the asset enhancement resulting from the services. A major uncertainty about the existence of value may indicate that an item received or given should not be recognized. 7 b. Paragraph 20: The present value of estimated future cash flows using a discount rate commensurate with the risks involved is an appropriate measure of fair value of unconditional promises to give cash . 8 SIf a present value technique is used to measure the fair value of unconditional promises to give cash, subsequent accruals of the interest element shall be accounted for as contribution income by donees and contribution expense by donors. Not-for-profit organizations shall report the contribution income as an increase in either temporarily or permanently restricted net assets if the underlying promise to give is donor restricted. 8 An entity may estimate the future cash flows of a portfolio of short-term promises resulting from a mass fund-raising appeal by using experience it gained from similar appeals. c. Paragraph 184: Mission G would recognize the contributed property as an asset and as support and measure that property at its fair value (paragraph 8). Information necessary to estimate the fair value of that property could be obtained from various sources, including (a) amounts recently paid for similar properties in the locality, (b) estimates of the market value of the property by local appraisers or real estate brokers, (c) an estimate of the fair value of the property by the local tax assessor’s office, or (d) estimates of its replacement cost and estimates of its replacement cost adjusted to reflect the price that would be received for the contributed property (paragraph 19). This contribution is unrestricted support because the donated assets may be used for any purpose and Mission G does not have a policy of implying time restrictions on gifts of long-lived assets (paragraph 16). If Mission G’s policy is to imply a time restriction, the contribution is temporarily restricted support and the restriction expires over the useful life of the building. d. Paragraph 186: If Museum H capitalizes its collections, Museum H would recognize the fair value of the contributed work of art received as revenue and capitalize it as an asset at its fair value (paragraphs 13 and 19). The staff of Museum H is 110
qualified to estimate the fair value of the contributed painting and evidence of its fair value exists. If Museum H does not capitalize its collections, Museum H is precluded from recognizing the contribution (paragraph 13) and would provide the information required by paragraphs 26 and 27. e. Paragraph 208: The 19X0 communication between Individual R and Church S specified an intention to give. The ability to modify a will at any time prior to death is well established; thus in 19X0 Church S did not receive a promise to give and did not recognize a contribution received. When the probate court declares the will valid, Church S would recognize a receivable and revenue for an unconditional promise to give at the fair value of its interest in the estate (paragraphs 8, 20, and 19−21). If the promise to give contained in the valid will was instead conditioned on a future and uncertain event, Church S would recognize the contribution when the condition was substantially met. A conditional promise in a valid will would be disclosed in notes to financial statements (paragraph 25). E17. FASB Statement No. 124, Accounting for Certain Investments Held by Not-for- Profit Organizations, is amended as follows: a. Paragraph 3(a) and its related footnote 3: Sales prices or bid-and-asked quotations for the security are currently available on a securities exchange registered with the Securities and Exchange Commission (SEC) or in the over-the-counter market, provided that those prices or quotations for the over-the-counter market are publicly reported by the National Association of Securities Dealers Automated Quotations systems or by Pink Sheets LLCthe National Quotation Bureau. Restricted stock 3 does not meet that definition meets that definition if the restriction terminates within one year. 3 The fair value of restricted stock shall be measured based on the quoted price of an otherwise identical unrestricted security of the same issuer, adjusted for the effect of the restriction, in accordance with the provisions of FASB Statement No. 157, Fair Value Measurements.For the purpose of this Statement, restricted stock means equity securities for which sale is restricted at acquisition by governmental or contractual requirement (other than in connection with being pledged as collateral) except if that requirement terminates within one year or if the holder has the power by contract or otherwise to cause the requirement to be met within one year. Any portion of the security that can be reasonably expected to qualify for sale within one year, such as may be the case under Rule 144 or similar rules of the SEC, is not considered restricted. 111
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Financial Accounting Series NO. 284
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Summary This Statement defines fair
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(blockage factor). This Statement e
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instruments as of the beginning of
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Copyright © 2006 by Financial Acco
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Statement of Financial Accounting S
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disaggregated) for purposes of appl
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Application to Assets 12. A fair va
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of the elements in the transaction,
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paragraph 19). The disclosure provi
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sufficient to absorb the quantity h
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c. For fair value measurements usin
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38. At the date this Statement is i
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A3. The judgments applied in differ
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include those buyers that initially
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participants have technology in a m
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elevant data points in the market a
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in the fair value hierarchy within
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the one- and two-year options on th
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tions in which the price in a trans
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higher of its fair value in-use as
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measure fair value are required in
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Assets Measured at Fair Value on a
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d. The price for bearing the uncert
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liability being measured, it may be
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cash flows, it likely will be highe
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Appendix C BACKGROUND INFORMATION A
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Appendix C BACKGROUND INFORMATION A
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Scope Share-Based Payment Transacti
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epresent the fair value of the inst
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C20. Accordingly, the guidance for
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clearly, the Board revised the defi
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or liability (for example, a commod
Page 71 and 72: Application to Liabilities C39. For
Page 73 and 74: whether changes in a debtor’s cre
Page 75 and 76: entity’s credit standing makes th
Page 77 and 78: Valuation Techniques C53. This Stat
Page 79 and 80: C60. In its discussions, the Board
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Page 97: International Financial Reporting S
Page 100 and 101: Pronouncement Statement 65* Stateme
Page 102 and 103: Pronouncement Interpretation 45* In
Page 104 and 105: Pronouncement FSP AAG INV-1 and SOP
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Page 110 and 111: E6. FASB Statement No. 19, Financia
Page 112 and 113: . Paragraph 8: Broadcasters may bar
Page 114 and 115: cost or marketfair value for each t
Page 116 and 117: and cost required for the buyer to
Page 118 and 119: significant, tThe fair value of an
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Page 124 and 125: . Paragraph 112 (glossary), as amen
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Page 130 and 131: value of an asset (or liability) in
Page 132 and 133: securities. An acquiring entity oft
Page 134 and 135: as the basis for the measurement, i
Page 136 and 137: of those cash flows that are embodi
Page 138 and 139: current rate. Any downward revision
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Page 142 and 143: Date Incurred 12/31/03 12/31/04 12/
Page 144 and 145: market prices in active markets are
Page 146 and 147: Course of Action Cash Flows Estimat
Page 148 and 149: i. Paragraph A13: The following tab
Page 150 and 151: accordance with paragraph 7, the en
Page 152 and 153: expected present value technique of
Page 154 and 155: E29. Statement 133 Implementation I
Page 156 and 157: upon the assignment because the pro
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