“Fair Value Accounting and Loan Assets: Debt Securities and Investor Implications”
Lead-in: A business challenge that confronts entrepreneurs on nearly a daily basis is how to evaluate their ventures’ profitability. If only they had
One subtopic is the “Adjustment to the present value” component of the fair value measurement for debt securities.
As mentioned by the authors Jung
“Accounting for Fair Value Differences between Debt Securities and Loan Assets in MERCO
Introduction: Lead with some key data (financial metrics / industry growth projections) to set the tone
Lead Koo and the problem statement to be analyzed. Article authors will likely provide more insight into what’s going on, so we won’t go as deeply into analysis as if they wrote this themselves. However, we’ll still aim for a rigorous analysis in each section without losing a human touch. 75 words maximum for Introduction
“Fair value measurement of debt securities and loan assets.”
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A case regarding whether certain entities like Kellogg’s Company should adopt a financial framework known as the “fair value accounting standard” (GAAP 89, SFAS 157 or the Accounting Standards Board or FVSB standard). Fair values measure market values which may not necessarily reflect reality because of asymmetric information or illiquid securities. The case background explores three factors; company operations, industry landscape (market and competitive), and current regulation. Kellogg aims for increased transparency in accounting through implementing this standard
Fair Value Accounting for Debt Securities and Loan Assets: Principles and Applications.
Lead-in – **Background Information (Proper nouns required where possible but not extensive – don’t use abbreviations unnecessarily.
How to implement fair value accounting for loan assets and debt securities in accounting systems.
Following sections can still follow this pattern. Section: Analysis
“Jung Koo Kang Krishna G. Palepu Charles C.Y. Wang on fair value
Probable length of section based on current character limit
(210/1057 characters – about 40-page A4 handwritten paper), so adjust for concision/quality trade-off as required
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“Valuation implications of loan securities and assets under fair value accounting”
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## CaseBackground: Fair Value Accounting and Limitations for Debt securities and loans in Germany
### Local Law Practices and Regulations
Jung Koo Kang, Khrihsa G Palepu, Charles H WYWang from Harvard Business University analyzed Fair Value Accounting (FAVAs) for loan assets as opposed to securities holdings. Their focus was on Germany due to its use in local markets and potential limitations which lead to divergence from International Generally Accepted Accounting Principles (IFRS).
“Impact of Interest Rates on Debt Securities Fair Value Calculation”
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