The Fair Value Option for Financial Instruments

This video discusses the fair value option in financial accounting. This option allows companies to elect to account for most types of financial instruments at fair value, with unrealized gains or losses flowing through Net Income. Thus, a firm could elect to treat a held-to-maturity investment or an investment that would otherwise qualify for the Equity Method (if you own 20% to 50% of the investee) at fair value. The election to account for a financial instrument at fair value is irrevocable, is made on an instrument-by-instrument basis, and can only be made at certain times (which are discussed in the video).-
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[@willharvey4156]

Have you ever considered putting together a CPA study package? Your videos are significantly better than any CPA prep course! I would be willing to pay for these videos.

[@Edspira]

I have considered putting together CPA materials, and I'm planning on putting out auditing and tax materials within the next year. Then, I'll put together a CPA course on www.edspira.com Of course, all the materials will be free. I was very fortunate to get an education, and my goal is to spread what I learned to as many people as possible. Thanks for watching the videos!

[@joym1925]

@@Edspira You are amazing! Thank you

[@africarib]

Absolutely. I'm studying the CMA using WIley and I'm on this channel all the time when something is confusing. Crystal clear every time.

[@MyFinancialFocus]

This is the kind of creative accounting I enjoy looking for in financial statements.

[@orlandolazardi9818]

I love you man you’re saving me got a test in 10 hours and I’m studying for it lol all nighter.

[@amirhassanein_]

Thank you!

[@paulhan7770]

If a publicly traded company were to elect the fair value option for certain instructments, doesnt this lose comparability with other similar company that does not choose the fair value option at all? Great content as always!

[@一点一滴学英文]

very help, thank you so so so ... much!

[@Edspira]

Glad to help. Best of luck to you in your studies!

[@ezatullahsaibay4100]

Thank you for the videos, your lectures are always helpful!

[@samabenojar49]

Please make videos for derivatives.

[@phil89ab]

Thanks! this was helpful

[@Edspira]

No problem!

[@Quentyn73]

Let me understand what happens with AFS security for which the investor has not elected FVO.

[@ezatullahsaibay4100]

I really need your lecture on derivatives, please let me know if you have any material on this subject?

[@Edspira]

I do not have a video on derivatives. I suggest checking out Khan Academy's KZbin channel since he covers all the math topics in a similar style. Best of luck in your studies!