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The financial Accounting standards No 157 deals with fair value and ensuring that their are no inconsistencies. The new improved financial reporting should “result in increased consistency and comparability in fair value measurements” It measures assets and Liabilities and gives people a better understanding of fair value. The numbers that are inputted are used as measurements which are the changes in assets for a specific time period. Financial statements should be applied at the beginning of the fiscal year. If there are any changes that need to be made should be made at the beginning of the fiscal year. When creating the statements and making the adjustments the difference is carried out and adjusted from the opening balance of retained earnings. When making corrections it is important that the assets or the liabilities balance each other. One is done to one side should be done to the other side.??

Market approach, income approach, and cost approach are all techniques that are included in the Financial Accounting standards non 157. These are three different ways using assets and liabilities using future value as well as a certain value on the item.??




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