Publications – Dreihaus College of Business
The FASBs Concepts Statement On Cash Flows And Present Value
Document Type
Article
Publication Date
January 2003
Abstract
In February 2000, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Concepts No. 7, Using Cash Flow Information and Present Value in Accounting Measurements. In this document the FASB asserts without proof that a present value computation along its lines will provide a good estimate of the fair value of an asset or liability. Using numerical examples provided by the FASB, we attempt to construct arguments in support of the FASB’s claim. We find that such arguments require strong and not at all obvious assumptions about players in hypothetical markets.
Source Publication
Journal of Applied Business Research
Recommended Citation
Martens, Stanley and Berry, Thomas. (2003) The FASBs Concepts Statement On Cash Flows And Present Value. Journal of Applied Business Research.
https://via.library.depaul.edu/buspubs/53
