Intermediate Accounting Project Essay Example | Topics and Well Written Essays - 500 words

Intermediate write up Project - Essay Exampleaturity by enterprises report at amortized cost, trading securities which are debt and equity securities inform at beauteous value with earnings including the unrealized gains and losses and bought and held primarily for selling, and available-for-sale securities which are debt and equity securities reported at uninfected value with unrealized gains an losses excluded from earnings serving as a break away component in shareholders equity and which are neither classified as held-to-maturity securities or trading securities. The statement was mainly in response to the concerns expressed by the regulators and other financial mart players related to the recognition and measurement of investment in debt securities, most specific eachy the ones held by financial institutions. disdain providing the various standardized procedures related to debt and equity, there were certain issues that came to surface with FAS 115. The fair value measureme nts application in the financial reporting by all the statements of Financial Accounting Standards differed among the various dozens of pronouncements that necessitated a fair value measurement. As the time passed by, these different financial statements referring to different accounting concepts created various inconsistencies in applying the fair value measurements, thus meaning no standardization provided to the financial market. These inconsistencies and worries of the preparers of the financial statements regarding calculating the fair value in absence of the quoted market prices brought in the Accounting Standards Codification 820 (ASC 820). This coding is an umbrella under which all the various standards are pooled up, thus leading to easy referencing and maintaining of the most up to date records. This coding agree to FASB would bring in increased consistency, reliability and comparability to the financial reporting. This coding was required because it simplifies access, im proves accuracy of the research, alleviates jeopardize of