Statement of Financial Accounting Standards No. 157


Fair value measurements accounting standard issued in September 2006 by the Financial Accounting Standards Board (FASB). FAS 157 became effective for entities with fiscal years beginning after November 15, 2007. For investment securities held by a company, there are three different classifications: Trading securities, Available for sale securities, and Held to maturity securities. Currently, under GAAP, Trading and Available for sale securities are recorded at fair market value, while Held to maturity securities are recorded at original cost.

Investing Essentials

Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day


To guarantee, as to guarantee the issuer of securities a specified price by entering into a purchase and sale agreement. To bring securities to market.

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