Describe the three basic valuation approaches for estimating fair values. Relate the valuation approaches to hierarchy of inputs.
Answer to relevant QuestionsWhat are the major issues that an analyst needs to consider when analyzing financial statements prepared under the fair value accounting model?Explain how accounting concepts and standards, and the financial statements based on them, are subject to the pervasive influence of individual judgments and incentives.Explain how earnings management affects earnings quality. How is earnings management distinguished from fraudulent reporting?Distinguish between short-term and long-term accruals.Describe the role that accrual accounting information and cash flow information play in your own models of company valuation.
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