Business, Legal & Accounting Glossary
Statement issued by the Financial Accounting Standards Board which outlines requirements related to mark-to-market accounting. The statement is entitled “Fair Value Measurements”, and defines the categories into which companies must classify their assets (Level 1 assets, Level 2 assets, or Level 3 assets). The levels are differentiated by how easily fair market value can be calculated. FASB 157 became effective in late 2007, shortly after the problems which resulted in the write down of many subprime mortgages. By setting these guidelines, it helps investors get a better idea of the way a company’s assets are distributed.
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This glossary post was last updated: 17th November, 2021 | 0 Views.