FAS 157 and Non-performance Risk for Derivative Financial Instruments: More Than Meets the Eye
Arguably no other accounting standard has received so much attention in recent times as Statement of Financial Accounting Standards No. 157 ‘Fair Value Measurements’ (ASC 820, and formerly FAS 157). This article explores the application of ASC 820 on derivatives financial instruments, and showcases the importance of consider the nature of such financial instruments when calculating adjustments for credit risk.
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FTA: Valuing Derivatives: Under AASB 13 Fair Value Measurement
Valuing Derivatives: Under AASB 13 Fair Value Measurement
January 19, 2015, FTA Outlook, Australia
By Steve Castleton and Andrew Brown
AASB 13, Fair Value Measurement (“AASB 13”) was issued in 2011 and became effective January 1, 2013. Even though the standard has been effective for nearly 2 years, many companies are either still grappling with