Fdsa

I. Introduction

There are one of three conditions, listed below, that must be met to have fair value considered readily available. Accounting for an impairment of a security has multiple steps to disclose the impairment properly. A company may sell a security ? before maturity and still consider the security a held-for-maturity security. There are specific disclosures for sale or transfer of held-for-maturity that must be reported on the company’s financial statements.

II. When fair value is considered readily available? (FASB ASC 820-10-20)

According to the Federal Accounting Standards Board (FASB), fair value is considered readily determinable when one of these three conditions is met:

i. If sales prices or bid-and-asked quotations are currently available on a securities exchange registered with the U.S. Securities and Exchange Commission (SEC) or in the over-the-counter market, given that the prices and quotations are publicly reported by the National Association of Securities Dealers Automated Quotations systems or by Pink Sheets LLC. Restricted stocks meet that definition if the restriction terminates within one year.

ii. If the equity traded only in a foreign market is readily determinable if that foreign market is of a breadth and scope comparable to one of the U.S. markets referred to above

iii. Mutual fund fair value is readily determinable if the fair value per share is determined and published and is the basis current transactions.

III. Accounting for Impairment of a security (FASB ASC 320-10-50-06)

These are steps that an entity must take to properly disclose an impairment of a security:

a) Each date which a statement of financial position is presented, the entity discloses their investment including

i. Aggregate related fair value of investments with unrealized losses

ii. Aggregate amount of unrealized losses

b) As of the date of the most recent financial statements, additional information...