The case note illustrates how fair value accounting apply to debt securities that are classified by the financial institutions as (1) "trading" securities, (2) "available for sale" securities, or (3) "hold to maturity" securities. It clarifies the hierarchy for input signals used in valuing Level 1, Level 2 and Level 3 financial assets.
Note Fair Value Accounting for Investments in Debt Securities Case Study Solution 1
Finally, it notes the percentage of assets held by four types of financial institutions that are (a) accounted for at "fair value," (b) the hierarchical categorization of the assets, and (c) the percentage of assets held by each association class where changes in the fair market value change that institution's reported income.
PUBLICATION DATE: March 23, 2009 PRODUCT #: 209134-HCC-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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