📝 Overview:
In this episode, we break down the concept of fair value accounting and how it shapes what shows up on your balance sheet.
You'll learn why "value" isn't always just about what you paid, but what the market thinks it’s worth today.
From investments and real estate to liabilities and impairments, fair value is a key concept that impacts both financial reporting and decision-making.
🔍 Key Topics Covered:
What is fair value? (Hint: It’s market-based, not cost-based)
The three levels of the Fair Value Hierarchy
Examples: Marking investments to market, revaluing assets, and more
Why understanding fair value is critical for CPA candidates, investors, and analysts
🎯 Who Should Listen:
CPA exam candidates (especially for FAR)
Finance professionals and accounting students
Anyone trying to interpret or prepare GAAP-compliant balance sheets
💡 What You’ll Learn:
You’ll gain clarity on how assets and liabilities are valued using real market data, what those levels mean, and how it affects the numbers you see on financial statements.