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Discuss the Use of the Fair Value Option Originally Described

question 33

Essay

Discuss the use of the fair value option originally described in SFAS No. 159 now contained at FASB ASC 825-10.


Definitions:

Goods

Physical items that are produced, bought, or sold with the aim to satisfy the wants or needs of consumers.

Services

Actions or activities provided to satisfy the needs and wants of consumers without resulting in the ownership of a tangible product.

Seller

An individual or entity that offers goods or services for sale.

Cash Discount

An incentive for early payment, reducing the buyer's total amount owed.

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