Fair Value Accounting Fraud: New Global Risks and Detection Techniques / Edition 1

Hardcover (Print)
Used and New from Other Sellers
Used and New from Other Sellers
from $1.99
Usually ships in 1-2 business days
(Save 97%)
Other sellers (Hardcover)
  • All (9) from $1.99   
  • New (6) from $43.17   
  • Used (3) from $1.99   


In its December 2008 report on the use of fair value accounting inthe United States, the Securities and Exchange Commission (SEC)soundly endorsed the use of fair value accounting, encouraging theexpansion of fair value applications in financial statements, whilealso supporting clarification and simplification of fair valueaccounting standards.

Providing much-needed, practical guidance that simplifies anintimidating topic, Fair Value Accounting Fraud: New GlobalRisks and Detection Techniques is a nuts-and-bolts bookdedicated to equipping fraud investigators and auditors tounderstand the many risks of fraud based on how fair valueaccounting is utilized in the preparation of financialstatements.

Not designed as a how-to book on performing business or assetvaluations, Fair Value Accounting Fraud instead familiarizesprofessionals with the ins-and-outs of fraud issues in fair valueaccounting with discussion of:

  • The Use of Fair Value Measurements in Financial Statements
  • Methods of Determining Fair Value
  • Recent Changes to Fair Value Accounting Standards
  • Asset-based Fraud Schemes Involving Fair Value
  • Investments in Debt and Equity Securities
  • Intangible Assets
  • Nonmonetary Transactions
  • Business Combinations
  • Liability-based Fraud Schemes
  • Comparison of U.S. GAAP and IFRS
  • Special Fair Value Issues of Not-for-Profit Organizations
  • Fair Value Disclosure Issues
  • Internal Controls for Fair Value Accounting
  • Detection of Fair Value Accounting Fraud

Author Gerard Zack, nationally recognized accounting, audit, andfraud expert, clearly demonstrates his experience in this subject,providing readers with an overview of the fair value applications,how those applications differ under U.S. and internationalaccounting standards, as well as some of the most commonly usedmethods, especially as these subjects relate to the primaryfocus—the risk of financial reporting fraud.

Conversational in tone with valuable insights, Fair ValueAccounting Fraud lifts the veil of confusion from thesubstantial and growing requirements for understanding the variousmethodologies used in determining and detecting fair valueaccounting fraud.

Read More Show Less

Product Details

  • ISBN-13: 9780470478585
  • Publisher: Wiley
  • Publication date: 8/31/2009
  • Edition description: New Edition
  • Edition number: 1
  • Pages: 250
  • Product dimensions: 6.20 (w) x 9.10 (h) x 1.00 (d)

Meet the Author

Gerard M. Zack is President of Zack, P.C. and is a nationally recognized expert on accounting, audit, internal control, and fraud issues. He is a regular speaker at AICPA and Association of Certified Fraud Examiner (ACFE) conferences and events, and is the author of Fraud and Abuse in Nonprofit Organizations: A Guide to Prevention and Detection (Wiley).

Read More Show Less

Table of Contents




CHAPTER 1 Overview of Financial Statement Fraud and FairValue Accounting.

Introduction to Financial Reporting Fraud.

What Makes It Fraud?

Why Financial Reporting Fraud Is Perpetrated.

Using One Fraud to Hide Another.

CHAPTER 2 The Use of Fair Value in FinancialStatements.

Historical Cost versus Fair Value.

Sources of Accounting Principles.

U.S. GAAP versus IFRS.

Fair Value Option Added for U.S. GAAP.

Fair Value Defined.

International Convergence.

Some Principles of Financial Statement Presentation.

Effective Dates of Accounting Standards.

Impact of Fraud on Financial Statements.

CHAPTER 3 Methods of Determining Fair Value.


Market Approach.

Income Approach.

Cost Approach.

Internal versus Externally Developed Valuations.

Inputs to Valuation Methods.

Fair Value Guidance under IFRS.

Availability of Market Evidence.


CHAPTER 4 Investments in Debt and Publicly Traded EquitySecurities.

Scope of Investments Covered.

Sources of U.S. GAAP and IFRS.

Classification and Treatment—U.S. GAAP.

Classification and Treatment—IFRS.

Reclassifications in General.

Reclassifications from the Held-to-Maturity Category.

Determination of Fair Value.

Active versus Inactive Markets.

Temporary versus Other-than-Temporary Impairments—U.S.GAAP.

Impairment Losses—IFRS.

Summary of Fraud Risks.

CHAPTER 5 Ownership Interests in Nonpublic Entities.

Sources of U.S. GAAP and IFRS.


Consolidated Financial Statements.

Jointly Controlled Entities versus Jointly ControlledAssets.

Equity Method Investments.

Proportionate Consolidation.

Fair Value Option.

CHAPTER 6 Loans and Receivables.

Sources of U.S. GAAP and IFRS.

Recognition and Measurement—U.S. GAAP.

Recognition and Measurement—IFRS.

CHAPTER 7 Intangible Assets and Goodwill.

Sources of U.S. GAAP and IFRS.

Asset versus Expense.

Web Site Costs.


Finite Life Intangible Assets.

Residual Value.

Indefinite Life Intangible Assets.

Impairment Losses.

Concluding Remarks.

CHAPTER 8 Business Combinations.

Sources of U.S. GAAP and IFRS.

Business Combination versus Asset Acquisition.

Accounting for Business Combinations.

Identification of Intangible Assets.

Business Combinations Achieved in Stages.

CHAPTER 9 Asset Impairments.

Sources of U.S. GAAP and IFRS.

Definition of an Impairment Loss.

When to Test for Impairment.

Indicators of Impairment of Assets.

Extent of Impairment Loss.

Reversal of Previous Impairment Losses.

CHAPTER 10 Property and Equipment (Including InvestmentProperties).

Sources of U.S. GAAP and IFRS.

Initial Recognition.

Measurement after Initial Recognition.

Investment Property.

Impairment Losses.


CHAPTER 11 Debt Obligations.

Sources of U.S. GAAP and IFRS.


Fair Value Option.

Valuation of Debt.

CHAPTER 12 Deferred Revenue.

Sources of U.S. GAAP and IFRS.

Recognition—Customer Loyalty Programs.

Multiple Deliverable Arrangements.

CHAPTER 13 Asset Retirement Obligations.

Sources of U.S. GAAP and IFRS.

Recognition—U.S. GAAP.


Can a Reliable Estimate Be Determined?

Measuring and Recording an Asset Retirement Obligation.

Summary—Comparison of U.S. GAAP and IFRS.

CHAPTER 14 Guarantees.

Sources of U.S. GAAP and IFRS.

Recognition—U.S. GAAP.




CHAPTER 15 Derivatives and Hedging.

Sources of U.S. GAAP and IFRS.

Definitions and Treatment—U.S. GAAP.

Definitions and Treatment—IFRS.


Embedded Derivatives.

CHAPTER 16 Assets or Liabilities of Sponsors of EmployeeBenefit Plans.

Sources of U.S. GAAP and IFRS.

Recognition and Measurement—U.S. GAAP.

Recognition and Measurement—IFRS.

CHAPTER 17 Contingencies and Provisions.

Sources of U.S. GAAP and IFRS.

Recognition—U.S. GAAP.

Amount of Loss to Be Recognized.



Comparison of U.S. GAAP and IFRS.

CHAPTER 18 Share-Based Transactions.

Sources of U.S. GAAP and IFRS.

Recognition—U.S. GAAP.

Measurement—U.S. GAAP.



CHAPTER 19 Nonmonetary Transactions.

Sources of U.S. GAAP and IFRS.

Recognition and Measurement—U.S. GAAP.

Recognition and Measurement—IFRS.

Advertising Barter Transactions—U.S. GAAP.

Advertising Barter Transactions—IFRS.

CHAPTER 20 Special Fair Value Issues of Not-for-ProfitOrganizations.


Noncash Contributions of Assets.

Contributed Use of Assets.

Promises to Give.

Contributed Services.

Matching Requirements.

CHAPTER 21 Fair Value Disclosure Issues.


Sources of Disclosure Requirements.

Financial Instruments.

Impairment Losses.



CHAPTER 22 A Framework for Detecting Fair Value AccountingFraud.

Assessing the Risk of Fraud.

Understanding How Fair Value Impacts the FinancialStatements.

External Factors that Indicate Risk.

Internal Risk Factors.


Internal Controls over Fair Value Accounting.

The Risk of Management Override.

Framework for Fair Value Accounting Fraud Detection.

Auditing Standards.

Auditor Independence.

CHAPTER 23 Use of Ratios and Other AnalyticalProcedures.

Analytical Procedures as a Fraud Detection Tool.

Horizontal Analysis.

Vertical Analysis.

Operating Ratios.

Customized Ratios.

Appendix A Summary Checklist of Fair ValueAccounting Fraud Risks.

Appendix B SEC Office of the Chief Accountant andFASB Staff Clarifications on Fair Value Accounting.

Appendix C Internal Controls over Fair ValueAccounting Applications.


About the Author.


Read More Show Less

Customer Reviews

Be the first to write a review
( 0 )
Rating Distribution

5 Star


4 Star


3 Star


2 Star


1 Star


Your Rating:

Your Name: Create a Pen Name or

Barnes & Noble.com Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & Noble.com that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & Noble.com does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at BN.com or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation


  • - By submitting a review, you grant to Barnes & Noble.com and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Noble.com Terms of Use.
  • - Barnes & Noble.com reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & Noble.com also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on BN.com. It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously

    If you find inappropriate content, please report it to Barnes & Noble
    Why is this product inappropriate?
    Comments (optional)