FASB 157
Definition
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.
Use FASB 157 in a sentence
“ You should try and make sure that you are always fully up front any time that you are filling out a fasb 157. ”
“ The fasb 157 was a very important thing for us and I was really glad that I knew what it was and how it functioned. ”
“ The FASB 157 statement was fully understood by our accounting team who always wanted an accurate picture of our inventory. ”
