Fair-value option for financial assets and liabilities.FASB has issued an exposure draft to give companies the option to report selected financial assets Financial assets Claims on real assets. and liabilities at fair value Fair Value 1. The estimated value of all assets and liabilities of an acquired company used to consolidate the financial statements of both companies.2. In the futures market, fair value is the equilibrium price for a futures contract. This is equal to the spot price after taking into account compounded interest (and dividends lost because the investor owns the futures contract rather than the physical stocks) over a certain period of time.. Under the proposal, companies would be able to measure at fair value financial assets and liabilities selected on a contract-by-contract basis. The proposal requires companies to display those values separately from those measured under different attributes on the face of the balance sheet. For more, visit http://fasb.org/news/nr012506.shtml. |
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