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

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34. The quantitative disclosures required by this Statement shall be presented using a tabular format. (See Appendix A.) 35. The reporting entity is encouraged, but not required, to combine the fair value information disclosed under this Statement with the fair value information disclosed under other accounting pronouncements (for example, FASB Statement No. 107, Disclosures about Fair Value of Financial Instruments) in the periods in which those disclosures are required, if practicable. The reporting entity also is encouraged, but not required, to disclose information about other similar measurements (for example, inventories measured at market value under ARB 43, Chapter 4), if practicable. Effective Date and Transition 36. This Statement shall be effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Earlier application is encouraged, provided that the reporting entity has not yet issued financial statements for that fiscal year, including any financial statements for an interim period within that fiscal year. 37. This Statement shall be applied prospectively as of the beginning of the fiscal year in which this Statement is initially applied, except as follows. This Statement shall be applied retrospectively to the following financial instruments as of the beginning of the fiscal year in which this Statement is initially applied (a limited form of retrospective application): a. A position in a financial instrument that trades in an active market held by a broker-dealer or investment company within the scope of the AICPA Audit and Accounting Guides for those industries that was measured at fair value using a blockage factor prior to initial application of this Statement b. A financial instrument that was measured at fair value at initial recognition under Statement 133 using the transaction price in accordance with the guidance in footnote 3 of EITF Issue No. 02-3, “Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and Contracts Involved in Energy Trading and Risk Management Activities,” prior to initial application of this Statement c. A hybrid financial instrument that was measured at fair value at initial recognition under Statement 133 using the transaction price in accordance with the guidance in Statement 133 (added by FASB Statement No. 155, Accounting for Certain Hybrid Financial Instruments) prior to initial application of this Statement. 14
38. At the date this Statement is initially applied to the financial instruments in paragraph 37(a)–(c), a difference between the carrying amounts and the fair values of those instruments shall be recognized as a cumulative-effect adjustment to the opening balance of retained earnings (or other appropriate components of equity or net assets in the statement of financial position) for that fiscal year, presented separately. The disclosure requirements of Statement 154 for a change in accounting principle do not apply. 39. The disclosure requirements of this Statement (paragraphs 32–35), including those disclosures that are required in annual periods only, shall be applied in the first interim period of the fiscal year in which this Statement is initially applied. The disclosure requirements of this Statement need not be applied for financial statements for periods presented prior to initial application of this Statement. The provisions of this Statement need not be applied to immaterial items. This Statement was adopted by the unanimous vote of the seven members of the Financial Accounting Standards Board: Robert H. Herz, Chairman George J. Batavick G. Michael Crooch Thomas J. Linsmeier Leslie F. Seidman Edward W. Trott Donald M. Young 15
Page 1 and 2: Financial Accounting Series NO. 284
Page 3 and 4: Summary This Statement defines fair
Page 5 and 6: (blockage factor). This Statement e
Page 7: instruments as of the beginning of
Page 10 and 11: Copyright © 2006 by Financial Acco
Page 13 and 14: Statement of Financial Accounting S
Page 15 and 16: disaggregated) for purposes of appl
Page 17 and 18: Application to Assets 12. A fair va
Page 19 and 20: of the elements in the transaction,
Page 21 and 22: paragraph 19). The disclosure provi
Page 23 and 24: sufficient to absorb the quantity h
Page 25: c. For fair value measurements usin
Page 30 and 31: A3. The judgments applied in differ
Page 32 and 33: include those buyers that initially
Page 34 and 35: participants have technology in a m
Page 36 and 37: elevant data points in the market a
Page 38 and 39: in the fair value hierarchy within
Page 40 and 41: the one- and two-year options on th
Page 42 and 43: tions in which the price in a trans
Page 44 and 45: higher of its fair value in-use as
Page 46 and 47: measure fair value are required in
Page 48 and 49: Assets Measured at Fair Value on a
Page 50 and 51: d. The price for bearing the uncert
Page 52 and 53: liability being measured, it may be
Page 54 and 55: cash flows, it likely will be highe
Page 57 and 58: Appendix C BACKGROUND INFORMATION A
Page 59 and 60: Appendix C BACKGROUND INFORMATION A
Page 61 and 62: Scope Share-Based Payment Transacti
Page 63 and 64: epresent the fair value of the inst
Page 65 and 66: C20. Accordingly, the guidance for
Page 67 and 68: clearly, the Board revised the defi
Page 69 and 70: 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
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Valuation Techniques C53. This Stat
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C60. In its discussions, the Board
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generally provide the most reliable
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not sufficient to absorb the quanti
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similar guidance in paragraph AG72,
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that indicates that market particip
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asset or liability. The Board concl
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alone, would not be cost beneficial
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in the statement of financial posit
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adjustment to the opening balance o
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International Financial Reporting S
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Pronouncement Statement 65* Stateme
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Pronouncement Interpretation 45* In
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Pronouncement FSP AAG INV-1 and SOP
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the proceeds received or the presen
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services received in exchange, and
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E6. FASB Statement No. 19, Financia
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. Paragraph 8: Broadcasters may bar
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cost or marketfair value for each t
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and cost required for the buyer to
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significant, tThe fair value of an
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Statement describe possible additio
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the fair value of the services rece
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. Paragraph 112 (glossary), as amen
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ase the estimate of future cash flo
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ased on valuation techniques) used
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value of an asset (or liability) in
Page 132 and 133:
securities. An acquiring entity oft
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as the basis for the measurement, i
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of those cash flows that are embodi
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current rate. Any downward revision
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current credit-adjusted risk-free r
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Date Incurred 12/31/03 12/31/04 12/
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market prices in active markets are
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Course of Action Cash Flows Estimat
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i. Paragraph A13: The following tab
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accordance with paragraph 7, the en
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expected present value technique of
Page 154 and 155:
E29. Statement 133 Implementation I
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upon the assignment because the pro
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