What is a FAS 157 report?

Financial Accounting Standard 157 (FAS 157) established a single consistent framework for estimating fair value in the absence of quoted prices, based on the notion of an “exit price” and a 3-level hierarchy to reflect the level of judgment involved in estimating fair values, ranging from market-based prices to …

How is fair value defined in SFAS No 157 FASB ASC 820 )? Additionally describe the fair value hierarchy?

157 (now known as ASC 820 in the updated FASB Codification) defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” Of note, this Statement requires consideration of the exit price paid (if …

When did FAS 157 become effective?

November 15, 2007
The Financial Accounting Standards Board (FASB) released its Statement of Financial Accounting Standards No. 157, Fair Value Measurements (FAS 157) in September 2006. FAS 157 became effective for fiscal years beginning November 15, 2007 and thereafter.

What is the definition of fair value in FASB 157?

FAS 157 defines fair value as the price that would be received to sell an asset or liability (i.e., exit price) in an orderly transaction between market participants at the measurement date.

When did FAS 157 begin to be used?

FAS 157 became effective for entities with fiscal years beginning after November 15, 2007. To define fair value, establish a framework for measuring fair value and expand disclosures about fair value.

What was the impact of FAS 157 on financial statements?

The adoption of FAS 157 did not have an impact on the measurement on the Company’s financial assets and liabilities, but did result in additional disclosure. FAS 157 defines fair value as the price that would be received to sell an asset or liability (i.e., exit price) in an orderly transaction between market participants at the measurement date.

How are assets and liabilities measured in FAS 157?

FAS 157 require that assets or liability should be measured at “fair value”, at “The price that would be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date”.