财务会计理论(司可脱)PPT文件07_scott_im_ch07.pptVIP

Chapter 7Measurement Perspective Applications Measurement Perspective Examples Accounts Receivable and Payable Capital Leases Lower-of-Cost-or-Market Rule Inventories Temporary investments N.B. No subsequent writeup if market value improves—partial application Examples, Cont’d. Ceiling Tests 2-stage procedure Impaired? If so, write down to fair value No subsequent writeup if asset value improves—partial application Post-Employment Benefits Expected present value of benefits earned Expense reduced by earnings on plan assets Reliability of estimates? Choice of discount rate Examples, Cont’d. Impaired Loans Write down to estimated realizable value Discounted at interest rate implicit in the loan transaction An extension of measurement perspective, since may write loan value up if its fair value improves Financial Instruments Definition A Financial Instrument is A contract… Cash, or a contractual right to receive/deliver cash or another financial instrument… Note Broad Definition Cash, receivables, payables, marketable securities,... SFAS 115 (and Section 3855, CICA Handbook), Cont’d. Why the 3 Categories? Core deposit intangibles Inability to value reliably precludes including financial liabilities in scope of SFAS 115 (Section 3855 includes some) Gains trading Fair value accounting makes gains trading more difficult for trading and available-for-sale securities Elaborate precautions to prevent gains trading for held-to-maturity securities Earnings volatility Reduced by including unrealized gains on available-for-sale securities in other comprehensive income (OCI) Derivative Financial Instruments Definition of Financial Instruments Includes Derivatives Definition of Derivatives A contract, the value of which depends on some underlying… May not require an initial cash outlay Generally settled in cash, not in kind SFAS 133 (and Section 3865, CICA Handbook) Fair Value Hedges Gains and losses on the hedging instrument included in net income Fair valuing the hedged