Time Value of Money and Fair Value Accounting. Dr Jae K. Shim

Time Value of Money and Fair Value Accounting - Dr Jae K. Shim


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       Time Value of Money and Fair Value Accounting: Concepts and Tools

      Time Value of Money and Fair Value Accounting

      Concepts and Tools

      Dr Jae K Shim MBA, PHD

      Professor of Business California State University, Long Beach and CEO Delta Consulting Company

      © Jae K Shim 2012

      Apart from any fair dealing for the purpose of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publisher, or in the case of reprographic reproduction in accordance with the terms and licences issued by the Copyright Licensing Agency. Enquiries concerning reproduction outside those terms should be addressed to the publisher. The address is below:

      Global Professional Publishing

      Random Acres

      Slip Mill Lane

      Hawkhurst

      Cranbrook

      Kent TN18 5AD

      Email: [email protected] Website: www.gppbooks.com

      Global Professional Publishing believes that the sources of information upon which the book is based are reliable, and has made every effort to ensure the complete accuracy of the text. However, neither Global Professional Publishing, the authors nor any contributors can accept any legal responsibility whatsoever for consequences that may arise from errors or omissions or any opinion or advice given.

      ISBN 978-1-906403-76-8

      Printed in the United Kingdom by Berforts

      For full details of Global Professional Publishing titles in Finance, Banking and Management see our website at:

      www.gppbooks.com

      Contents

       Accounting Applications

       Fair Value Measurements

       The Fair Value Hierarchy

       Risk and Restrictions

       The Difference between the Principal Market and the Most Advantageous Market

       Valuation Approaches

       The Three Levels of Fair Value Hierarchy

       Financial Applications

       Time Value Fundamentals

       How Do You Calculate Future Values? – How Money Grows

       Simple Interest

       Compound Interest

       Intrayear Compounding

       The Power of Compounding

       Future Value of an Annuity

       Ordinary Annuity

       Annuity Due

       Future-Value Difference between Ordinary Annuity and Annuity Due

       Can a Computer Help?

       What is Present Value – How Much Money is Worth Now?

       An Application

       Present Value of Mixed Streams of Cash Flows

       Present Value of an Annuity

       Ordinary Annuity (OD)

       Annuity Due (AD)

       Present-Value Difference between Ordinary Annuity and Annuity Due

       Can a Computer Help?

       Perpetuities

       Deferred Annuities

       Future Value of a Deferred Annuity

       Present Value of a Deferred Annuity

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