Fair value measurement, presentation and disclosure have been the subject of many accounting standards in recent years.  Measurement uncertainty exists for all fair value items in the financial statements. 

This course focuses on how to determine a fair value estimate for non-readily marketable investments that aren’t actively traded in a major exchange (such as private equity funds, certain high-yield bonds, and more).

Course Series

This course is included in the following series:

6 CoursesAn Auditor's Perspective on...

  1. Preparing Financial Statements - An Auditor’s Perspective on What Matters Most
  2. Independence Rules for CPA’s - An Auditor’s Perspective on Significant AICPA, Public Company, Governmental, and International Differences
  3. Designing and Performing Sampling Plans – An Auditor’s Perspective on Monitoring Internal Controls, Compliance, and the Reasonableness of Account Balances
  4. FASB ASC Section 205-40: Going Concern Uncertainty – An Auditor’s Perspective
  5. FASB ASC Topic 470: Debt – An Auditor’s Perspective on Common Balance Sheet Classification Issues
  6. FASB ASC Topic 820 Fair Value – An Auditor’s Perspective on Determining Fair Value of Non-Readily Marketable Investments
Learning Objectives
  • Discover types of non-readily marketable securities.
  • Explore fair value modeling techniques for Level 3 financial instruments.
  • Discover the use of Service Organization Control Reports to evaluate fair presentation of financial instruments.
Last updated/reviewed: August 7, 2023
19 Reviews (66 ratings)

Reviews

5
Anonymous Author
I enjoyed this course and learning how companies determine what a market participant is willing to pay for their assets and how that impacts the historical basis concepts used throughout accounting.

5
Member's Profile
I enjoyed this course and learning how companies determine what a market participant is willing to pay for their assets and how that impacts the historical basis concepts used throughout accounting.

5
Anonymous Author
The instructor presents well both the concepts of valuation under various circumstances according to the codification as well as provides examples to clearly communicate how the concept is applied.

5
Anonymous Author
The instructor clearly explained the topic step by step and it is very easy to follow the lecture. It gave an overview on the topic that highlighted those important points. Highly recommended!

5
Member's Profile
Great class on FASB ASC Topic 820. The CPE has extensive learning objectives that are met in a short period of time. I felt the instructor was effective in her delivery and teachings.

4
Anonymous Author
Great discussion on valuation. Instead of relying solely on market data, you can use these techniques as a checking for reasonableness of balances.

5
Member's Profile
Well-organized course. I'm surprised by how much I don't know about fair value. Anyone teaching this in their courses would benefit.

5
Member's Profile
Nice overview, and thoughtfully laid out. Would benefit from real-world examples as to why different levels of valuation are required.

5
Member's Profile
I liked that the presenter gives detailed explanations and examples that help you understand otherwise very technical applications.

5
Anonymous Author
Very good comprehensive and detailed overview of this topic and important considerations to make when evaluating issues around it.

3
Anonymous Author
Good information overall, but would have like to have more discussion on Black Scholes and other valuation methods.

5
Member's Profile
This was a very comprehensive summary of FMV and was communicated at a good pace with helpful examples.

5
Member's Profile
A well-structured and presented course. Lots of useful information as an introduction to the ASC 820.

5
Member's Profile
Excellent course. I found the discussions to be on topic with clear and concise information.

5
Anonymous Author
The course was great introductory course to ASC 820, the instructor was very effective.

5
Anonymous Author
This course provides a thorough overview of the fair value methodologies.

5
Anonymous Author
Clear, concise discussion over investment valuation techniques.

5
Member's Profile
This is a well organized and clearly articulated class.

4
Anonymous Author
good course, i wish it tackled more points on ASC 820

Prerequisites
Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course. 

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION and OVERVIEW
  Introduction to FASB ASC Topic 820 Fair Value 2:21
Fair Value
  Fair Value Defined 4:16
  Fair Value Hierarchy 8:43
  Fair Value Evaluation 9:18
  Measurement Uncertainty 5:28
  Sources for Fair Value Inputs 4:43
  Modeling Considerations 4:36
Valuation Models and Considerations
  Black-Scholes Valuation Model 5:36
  Zero-Coupon Valuation Model 3:59
  Third Party Considerations When Valuing Investments 10:16
  Valuing Investment Funds 11:05
Continuous Play
  FASB ASC Topic 820 Fair Value1:10:23
SUPPORTING MATERIALS
  Slides: FASB ASC Topic 820 Fair Value PDF
  FASB ASC Topic 820 Fair Value Glossary/IndexPDF
REVIEW and TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam