Fair value
While there is a large number of assets and liabilities reported or disclosed in financial statements, the percentage
of these items and the dollar impact on earnings may not have been exorbitant for most companies, except for
financial institutions.
In 2008, only 27% of the total assets of the S&P 500 companies that had adopted FAS 157 were actually reported
at fair value (Zion et al., 2009). While this represents about $6.6 trillion in assets, it is still a relatively small
percentage of the assets. Because of the mixed attribute model used in U.S. Generally Accepted Accounting
Principles (GAAP), some assets are measured using fair value while others—even very similar assets are
measured at cost, or amortized cost, or by some other measure.
(ไม่เข้าใจพารากราฟนี้ค่ะ)
Companies in the financial sector had a
much larger number of fair valued assets (39%) then did, for instance, companies in consumer staples (2%). Even
within the financial sector, investment banks and insurance companies, most of whose assets are reported at fair
value, were impacted more than commercial banks, whose largest assets is generally loans, which are not reported
at fair value (Casabona & Shoaf, 2010). In addition, there is ample empirical evidence to support the relevance of
fair value information of financial instruments. For example, Barth (2006) finds that fair valuation of investment
securities influences the share price indicating that it provides extra information to investors. Additional
discussion of findings of research on accounting for fair value of financial instruments can be found in FASC
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ใครเก่งภาษาอังกฤษ เรื่อง fair value ช่วยหน่อยค่ะ
While there is a large number of assets and liabilities reported or disclosed in financial statements, the percentage
of these items and the dollar impact on earnings may not have been exorbitant for most companies, except for
financial institutions.
In 2008, only 27% of the total assets of the S&P 500 companies that had adopted FAS 157 were actually reported
at fair value (Zion et al., 2009). While this represents about $6.6 trillion in assets, it is still a relatively small
percentage of the assets. Because of the mixed attribute model used in U.S. Generally Accepted Accounting
Principles (GAAP), some assets are measured using fair value while others—even very similar assets are
measured at cost, or amortized cost, or by some other measure.
(ไม่เข้าใจพารากราฟนี้ค่ะ)
Companies in the financial sector had a
much larger number of fair valued assets (39%) then did, for instance, companies in consumer staples (2%). Even
within the financial sector, investment banks and insurance companies, most of whose assets are reported at fair
value, were impacted more than commercial banks, whose largest assets is generally loans, which are not reported
at fair value (Casabona & Shoaf, 2010). In addition, there is ample empirical evidence to support the relevance of
fair value information of financial instruments. For example, Barth (2006) finds that fair valuation of investment
securities influences the share price indicating that it provides extra information to investors. Additional
discussion of findings of research on accounting for fair value of financial instruments can be found in FASC
ขอบคุณค่ะ