PDF FASB HomeFAS 159: The Fair Value option for Financial Assets and Summary of Statement No. 159.
Financial instruments that are not currently reported at fair value can be measured on an instrument-by-instrument basis.The fiscal years beginning after November 15, 2007, are to be applied prospectively.If FAS 157: Fair Value Measurements was also adopted, early adoption was allowed.
The rights and obligations under an insurance contract or warranty that is not a financial instrument but permit the insurer to settle is a recognized financial asset or liability according to paragraph 7 of FAS 159.
However, an investment in a subsidiary or variable interest entity that is required to be consolidated, employers' and plans' obligations for pensions, stock awards and other deferred compensation plans, financial assets and liabilities recognized under leases, deposit liabilities or withdrawable on demand of depository institutions and financial liabilities that are
The fair value of eligible items on the balance sheet can be changed through earnings.When the financial instrument ceases to qualify for specialized accounting, when the accounting treatment for an investment in another entity changes or an event requires an eligible item to be measured at fair value but does not require subsequent re-measurement, this election can be made at inception.A business combination.
If multiple advances are made to one borrower under one contract, the entire balance must be fair valued and not the individual advances, if the option is applied to an equity investment.
The amount of fair value presented on the balance sheet is similar to accounts receivable.
2.A description of similar items and the reasons for the partial electionb is required if using the instrument-by-instrument option.The aggregate number and the fair valued number are reconciled.
3.Information to enable users to understand how each line item in the balance sheet relates to major categories of assets and liabilities presented in accordance with FAS 157b.The aggregate carrying amount of items included in each line item in the balance sheet are not eligible for the fair value option.
4.The aggregate fair value is different from the aggregate unpaid principal balance.
5.The aggregate fair value of loans that are more than 90 days past dueb.The aggregate fair value of loans in non-accrual status if interest income is recognized separately from other changes.There is a difference between the aggregate fair value and aggregate unpaid principal balance for loans that are 90 days or more past due in non-accrual status.
1.The amounts of gains and losses for fair value changes are included in earningsb.The gains and losses are reported in the income statement.
2.There is a description of how interest and dividends are measured.
3.Changes in instrument-specific credit risk can affect the estimated amount of gains or losses included in earnings.The gains and losses were determined.
4.Changes in instrument-specific credit risk can have a significant affect on fair values.Information about the reasons for the change.The gains and losses were determined.