Accurate Accounting Measurement: Fair Value Measurement

On the other hand, looking at the statement of financial position, the fair value of financial assets and financial liabilities approximates the carrying amount disclosed in the consolidated statement of financial position and the notes to financial statements. Since the fair value measurement hierarchy is short-term accounts receivable and payable, we classify derivative hedging instruments as a reasonable approximation of the fair value of all other financial assets and liabilities.

FAS 157 is the accounting standard issued in September 2006. Its purpose is to establish a framework for determining fair value, measuring fair value and expanding disclosure of fair value measurements. FAS 157 achieves higher consistency and comparability in fair value measurements and provides better information, ie greater transparency, fairness to measure the range of assets and liabilities, investment in measurement development We are aiming to provide information to do. These measures measure the impact of revenue over time. FAS 157 defines "fair value" as "the price at which assets are sold or transferred in orderly transactions between market participants at measurement date."

The main purpose of using the fair value model as the most appropriate measurement method for financial statements and accounting documents is to identify the organization's balance sheet accurately to accurately reflect the organization's true market position on that day And to create capital value. At the time of publication of the statement, the IASB is involved in the fair value model and is in further consultation with the affected party. This is to define the model itself more clearly and to obtain a fair value position, which is more acceptable in the future.