Grendel By John Gardner Essay -- essays research papers

Grendel lives in a dark and gruesome underground cave with his mother and dozens of cold, unmoving creatures. He is real curious and, in his early years, finds a way to escape this terrible place and enter the world. Every night he wanders outside his cave, exploring the land some him. One night, he gets trapped in a tree. A band of human beings led by King Hrothgar approaches and, after some hesitation, attacks Grendel. They close in for the kill, but Grendels mother arrives just in time to save him.Years after his encounter with Grendel, Hrothgars power and influence grow until he rules an imwork forcese territory. He builds a glorious meadhall, the greatest in the land, and names it Herot. He builds roads to connect his kingdom and hires an immensely gifted Harper to play at special(a) occasions. Grendel is fascinated by the Harpers music and tries to join the humans, but he is attacked by the frightened guards and must flee. Feeling lonely and rejected, he visits an ancient d ragon that lives at heart the kingdom. The dragon speaks for some time, and his wicked, tired cynicism infects Grendel. He puts a charm on the young monster, making him impervious to human blades. After this, Grendel becomes a creature of fine destruction. At the onset of each subsequent spring, Grendel carries out several raids on Hrothgars meadhall. He is very careful about this, leaving just enough men behind to rebuild and grow for the next spring.Several years after he builds his meadhall, Hrothgar ...

The Catcher in the Rye - Character Analysis of Holden Caufield Essay

The Catcher in the Rye - Character Analysis of Holden CaufieldIn J.D. Salingers novel The Catcher in the Rye, the main character, Holden Caufield, describes in detail the parts of his life and his environment that bother him the most. He faces these problems with a kind of naivety that prevents him from richly understanding why it is that he is so depressed. His life revolves around his problems, and he seems helpless in evading them. Among others, Holden finds himself facing the issues of acceptance of death, growing up, and his own self-destructiveness.One of the hardships Holden moldiness cope with is his inability to come to terms with death, in particular that of his younger brother, Allie. Holden seems to have experienced a rather happy and carefree childhood he lived with his siblings, Phoebe and Allie, and had his older brother D.B. to look up to. Then Holden suddenly is faced with the realization that he has to grow up, and learn to live without Allie. The initial answer is painful Holden breaks his hand in a fit of emotion soon after the death. By the time Holde...

rights fees in sport :: essays research papers

The steadfast rule when it comes to sports and rights fees is that its the business of entertainment. The dollars are going to go where the value is. With Rights fees, networks tolerate fees to have the rights to a particular broadcast, for example sue madness, the NFL or the Olympics.Rights fees are determined by the value a certain property holds, this is determined by the ratings. The most important ratings market world widely is undisputedly the North American, and in particular the US market as we will later discuss with the Olympic media coverage. With in the US it is a struggle field to increase ratings because of the dollar value associated with the opportunity to sell advertising and consequently the rights fees.Personally I believe that 1.725 one thousand million is a ridiculous come up for NBC to pay for the rights fees of March Madness. But obviously they are not mad. The economics and financials behind their decisions to continually pay more and more is verticali fiable. Once again turn down to the ratings. The 70 hours of March Madness are extremely common in the US and boast extremely high ratings. Therefore, advertisers are willing to pay the big bucks to get their ads on the air. The same is true about the Superbowl, with 30 second advertising sports reaching astronomical highs networks are lining up to get the rights fees for the event. As Bill Brown the senior vice president of Fox Sports stated, we want entertainmentwe want to televise the teams that will deliver us the highest ratings. That really summarizes the essence of sport media today, and why rights fees are working. Fox, paying MLB about $417 million a year in a deal, which expires next year. With baseballs popularity on the rise again the rights fees for the league are undoubtadly going to increase. But as the numbers have shown the Fox network is the big spender when it comes to rights fees, dispensing $2.5 billion from 2001 to 2006 on MLB alone. While Fox has a hold on baseball, Time Warner and ABC/ESPN seem to be focusing their dollars on the NBA, both handing over just over $2 billion over a 6 year period . But as aformentioned the rating speak volumes and while the NBA is very popular in the US, from a network point of view March Madness, NCAA basketball is a winner.

Dysfunctional Medical Insurance Essay -- Argumentative

Dysfunctional Medical InsuranceA mom is waiting frantically in the local emergency room while her little girl continues to cry with pain. An hour goes by without any news as to when she will finally be treated. At last, their number gets called and they go over to the registration desk. The lady behind the desk opens their file and shakes her head in disbelief as she turns to look at yet a nonher(prenominal) mother with remorse. She continues to tell the mother that the hospital has refused to provide medical attention to her little girl due to redress problems. This scenario is sadly very common in the lower class families with little or no insurance coverage, in fact 20% of the U.S. population lacks medical coverage (Richman). While the initial nous of medical insurance seems more beneficial than not, the current health insurance situation has caused numerous negative repercussions for both the patients and the physicians. Some of these disadvantages include denial of health c be, compromised medical attention, astronomical billings, privacy issues, discriminatory plans, and even possible risks of fraud. The original idea of medical insurance should have been a noble way to back up Americans bear with medical bills in a case of an emergency or just routine physicals and check-ups. A lot of Americans coming from different financial situations could not afford the emergency or even the customary treatments and would on that pointfore go without medical attention. This obviously had dire consequences on the patients health, thus forcing the need of an alternative option. Fortunately, a handful of physicians associated with Sacramentos Sutter General Hospital saw beyond the despair. Seeing a need for an alternative health care financing vehicle in the previous(predicate) 1930s, the doctors created the first open enrollment hospital insurance plan in the United States (Sutter Health). As originally planned, this new medical insurance proposed b enefits to both the doctors and the patients patients could afford to be treated, while doctors could see more patients-even of the lower income class. Somehowbetween then and now, the plan has been twisted and turned around so much that it has doomed some of its greatest benefits and reputation. Because of the numerous loop holes in the current insurance plan, I believe that right now the drawbacks and disadvantages are overshadowin... ...been hit with a fractional of billion dollars in claims. As the extensity of this crime allows, there are many other issues to be dealt with besides just the insurance aspect. However, if insurance wasnt enforced into our society or even if loop holes didnt exist in this case, then this crime could not have been possible. Since insurance was introduced to our society, there have been many problems. Much like the little girl who was denied medical attention, many people suffer from these disadvantages of medical insurance. I believe that the medical insurance idea is argumentative, because there are a lot of repercussions that people may or may not have thought about. Besides the recent crimes being committed against them, the insurance companies are benefiting immensely, but are we? The prices of medical treatments are rising, the doctors attention to actual patients as opposed to who has insurance is diminishing, and less people are benefiting from health insurance. I do not think that medical insurance should have been proposed in the first place. I do admit that it should have been a benefit to Americans, but I have yet to see everyone benefit as initially planned.

One Flew Over The Cuckoos Nest :: essays research papers

"Ting. Tingle, tingle, tremble toes, shes a good fisherman, catches hens, puts em inna penswire blier, limber lock, three geese inna pickleone flew east, one flew west, on flew all over the cuckoos nestO-U-T spells outgoose swoops down and plucks you out."The book "One Flew Over the Cuckoos Nest" is about a man, Randle Patrick Mc potato who is a rough-and-tumble, fun-loving guy who comes into the mental protect in Oregon and challenges the authoritarian nurse, Ms. Ratched. As the struggle among them goes on, Mc Murphy starts to show the other men of the ward how to loosen up and that they do not take on to always listen to the nurse. Eventually, Mc Murphy is defeated when Ms. Ratched makes him get a lobotomy. When you first pick up the book, you will first notice that the story is told by one of the men who live in the ward. This is Chief Bromden a half-Indian who is one of the long time committed men. In my eyes, the Bromden is a key character in the whole book . The Chief, in reality, is 6 introduction 7 inches tall, but in his mind he sees himself as a man only two or three feet tall. This is because he has received over 200 electro-shock treatments and has been physiologically beaten to think that he is an inferior being to all others but he is not alone. All of the patients in the ward have had this done to them, somewhat more than others. Another thing that sets the Chief apart is the fact that he has led everyone to think he is deaf and mute. This has enabled him to hear some of the secrets of the ward because everyone thought it was safe to talk around him. The Chief has also been in the army and in WWII. He claims to hear and see machinery in the walls of the ward that track and monitor all action that goes on in and around the hospital. With his experiences in war and with what he has gone through in the ward, he a great deal loses himself in a "fog". He creates this "fog" in his mind so that he can numb the rea lity of where he is. Because of how he acts when in this fog, he has remained distant from all other patients in the ward. At least he was until he met McMurphy.

One Flew Over The Cuckoos Nest :: essays research papers

"Ting. Tingle, tingle, tremble toes, shes a good fisherman, catches hens, puts em inna pens fit out blier, limber lock, tether geese inna flock one flew east, one flew west, on flew over the cuckoos nestO-U-T spells outgoose swoops down and plucks you out."The book " whiz Flew Over the Cuckoos Nest" is about a man, Randle Patrick Mc Murphy who is a rough-and-tumble, fun-loving guy who comes into the mental ward in Oregon and challenges the sniffy nurse, Ms. Ratched. As the struggle between them goes on, Mc Murphy starts to show the other men of the ward how to loosen up and that they do not have to constantly listen to the nurse. Eventually, Mc Murphy is defeated when Ms. Ratched makes him get a lobotomy. When you first pick up the book, you will first notice that the story is told by one of the men who live in the ward. This is Chief Bromden a half-Indian who is one of the long time committed men. In my eyes, the Bromden is a key character in the solely book. Th e Chief, in cosmos, is 6 foot 7 inches tall, but in his mind he sees himself as a man only two or three feet tall. This is because he has received over 200 electro-shock treatments and has been physiologically beaten to think that he is an inferior being to all others but he is not alone. any of the patients in the ward have had this done to them, some more than others. Another thing that sets the Chief apart is the fact that he has led everyone to think he is deaf and mute. This has enabled him to memorize some of the secrets of the ward because everyone thought it was safe to talk around him. The Chief has also been in the army and in WWII. He claims to hear and see machinery in the walls of the ward that track and monitor all action that goes on in and around the hospital. With his experiences in war and with what he has gone through in the ward, he often loses himself in a "fog". He creates this "fog" in his mind so that he can numb the reality of where he is . Because of how he acts when in this fog, he has remained distant from all other patients in the ward. At least he was until he met McMurphy.

Philosophy Essay on Self Essay

I certify that this literature re look on is my own work and contains no material which has been veritable for the award of any degree or diploma in any institute, college or university. Moreover, to the best of my know conductge and belief, it contains no material previously published or written by another soul, except w present due reference is made in the text of the dissertation. Name Signed _________________________________________________ Date ___________________________________________________ The most fundamental of the questions troops asks him ego in his lifetime are, what/who am I ? and what is my purpose? The curiosity over this issue of the ego has spanned human model for millennia rooting from societal notion that life rearnot be just bricks and cement. Due to the inherent nature of these fundamental curiosities mankind has struggled from ancient times to uncover these mysteries. In the western-context, this brief essay pass on try to explore the dimensions of t he essence of ego ranging from medieval to the modern introduction of self. It will review the theories of self starting with Aristotelian science and Christian doctrines and their ultimate marriage by St. Thomas Acquinas moral theory.In effect, it then explores critical viewpoints and traces the development of Scientific Rationalization. Progressively, it debates Rene Descartes positivist views shaping his dualistic conception of the self. Furthermore, it poses the contrasting empiricist views of ass Locke where he blank spaces self-consciousness and remembrance as the variables to comprehend self. In addition, it contests David Humes proclamation of the self as fiction (Robinson, H. , 2012). The theories of self and identity gradually real over a historical timeline resulting in modern thought on the subject.In this regard, it is important to understand its development initiation from religious conception in the west. Curiosity on these issues can be traced back to accounts of Aristotle, where he is of the view that everything in nature has a purpose and everything can be rationalized based on its intent and the purpose it served (Greetham, B. 2006, p. 213). This is referred to as the teleological view, which contributed to the formation of medieval world view formed by Christian dogma and the Catholic church (Cavalier, G. ,1989).This Christian conception viewed the world as being Gods creation and expression of his will which was cosmologically meaningful and structured. The purpose of things under this religion is God give and is a part of the grand plan (Stanford encyclopedia of philosophy). This categorises the medieval belief of self, where humans have a certain place and purpose and the self is still in terms of the role it plays in the grand plan of things. The medieval Christian conception of self was greatly inspired by the work of thirteenth coulomb theologian St. Thomas Acquinas.In his opus he bridged the gap between faith and reason by linking Christian dogma and Aristotelian thought (OCallaghan, R. , 2010). In essence, he lived in a crucial juncture of western culture when the Latin translation of Aristotelian corpus was made available which in effect reignited the debate on relating faith and reason. His theories borrowed from Aristotle and Christian dogma and ethics which were consistently reaffirmed by the church over the centuries (auquinas from stanford). The aforementioned medieval religious conception of self forms the basis Acquinas ethical premise on how we ought to act (Greetham, B., 2006).Right and wrong actions based on their compliance with human nature and its place God-given inbred order, categorized as natural or unnatural. Hence, the self bounded and confined to serving a purpose. However, this religious world-view came under intense criticism with the coming of scientific advancement and rationality in the 16th and 17th centuries. Scientific thinking developed under the identicals of Descart es and Locke and was reasoned based on the accomplishments of Galileo and Newton(Zalta, E. , 2011).They disregarded the place of divine-will in their conception of self, basing it on mere down, empirical evidence and mathematical formulations. This shift of conception is termed demythologization, where everything works without a purpose and results from mechanical fundamental interaction of particles regulated by universal laws which can be mathematically formulated (Greetham, B. , 2006). Consequently, began the search of the self by looking within for purpose and meaning. The modern view of self is articulated in the works of 17th century philosopher Rene Descartes.He pioneered the dualistic understanding of the human being, which is made up of the mental substance ( opinion) and the somatic substance (body) (Warburton, N. , 1992). Here, the body has physical properties like having weight and using space, whereas the mind is a non-material substance, responsible for thought and e xperience and hence is the abode of consciousness. In his view, the self is a spiritual subject of experience which is fundamentally different from the body and nature, where the body inessential and the mind can exist independently.His radical scepticism led to the formation of the Illusion argument, where the bodily senses are deemed unreliable and thus the existence of the external world and body is uncertain. The only thing one can be certain of is that I exist. This is categorized under his famous proclamation -Cogito ergo sum, meaning I think, therefore I am (Cavalier, G. , 1989). In essence, the self is essentially mental and the search for purpose and meaning should be searched within ourselves instead of classifying it under totality of nature.In his endeavours, Descartes used the rationalist approach to knowledge, which solely relies on logic and scepticism . In contrast, his contemporary, English philosopher John Locke relies on the empiricist approach, where knowledge is acquired by the means of watchfulness and experience. His theology of self underlines the role of reason, consciousness and self-consciousness. As for Locke, he sees self-consciousness as a inseparable element in the conduct of any conscious action, like thinking and observing.The perception of the world by the senses, awareness of personal identity, actions performed and its retention (memory) over time is what constitutes self-consciousness (Robinson, H. , 2012). Personal identity here is quintessentially the self, in which memory is decisive variable as the consciousness of past actions is critical to being the corresponding person and selfhood is reliant on the consciousness and not the body. For instance, if a person has memories from a past life as Salvador Dali, then he is the same person in the current life with a different body. These arguments however get along ambiguous upon correlation with Descartes accounts.However, Lockes accounts differ where cites that it is not necessary that thinking, observation etc. to be the products of a non-material substance and leaves a prospect open that they could be of material origin. The self, Locke argues, is resultant from continuity of consciousness and not a substance as proposed by Descartes (Greetham, B. , 2006). Then again, there is a fallacy in these arguments if the self is continuity of consciousness and memory retention then without the memory of past actions accountability for the actions is cannot be held (Cavalier, g., 1989).For instance, it could be hypothesized in Lockes view, that a person who move murder as a child, who grew up to become a doctor and then as an old man he cannot remember his crime as a child, hence in effect, he cannot be held responsible for the murder. Eighteenth century philosopher David Hume continued in the empirical approach, maintaining that authentic knowledge is solely acquired on the basis of direct experience (Robinson H. , 2012). He borrows from Locke, however, h e reaches drastic conception where he conceives the self as fiction.Thereafter, he entirely disregards the substance view of the mind. He bases his conception strictly on experience or perception and maintains that the existential claim for the inner substance should be discoverable by experience (Greetham, B. , 2006). Through his experience, Hume, found no such substance but instead only a variety of perceptions where there is no identity or self binding them. Academics refer to this view as the bundle theory of substance, where different perceptions are in eternal flux (Robinson H. , 2012).However, Hume fails to identify a consolidativefactor and puts forth a vague understanding of the mind just being a bundle of perceptions. Consequently, the Cartesian theory of self gained an upper drop dead as it offers the unifying substance of mind in the conception of the self (Greetham, B. , 2006). The aforementioned theories of self significantly influence the post-modern conception of t he self, as the subject has a tendency to develop over time (Cahoone, L. , 2003). These western theories have borrowed from Eastern conceptions of self, which indicates ancient interaction between the west and the east.(Cavalier, G. , 1989). In the contemporary world, the twentieth century has been the fore-bringer of brisk industrialization in the western world, begetting fast-paced consumer societies, where the people have little or no time for personal fulfilment (Cahoone, L. 2003). This along with approaching of cultural pluralism, scientific rationalization and secularization of notions of religion has led to burgeoning interest in the conception of self (Olsen and Timothy, 2006, p. 139).On a personal basis, the theories of self explored here provided a clearer picture on the gradual development of understanding of self with a historical context and an insight into how these theories have shaped post-modern notions on the same (Collinson, P. et al, 2000). Descartes accounts an d his emphasis on the soul substance worked as a bride between my eastern thought origin and modern western conception on the subject. However, Lockes and Humes empirical approach and their emphasis on discovering self through experience is also profound to my conception of self.Their conclusions however appeared radical and absurd specially in the case of Hume where proclaims the self as being fictional. References Cahoone, L. (2003). From Modernism to Postmodernism An Anthology. Carlton Blackwell. Cavalier, G. &. (1989). Ethics in the History of Western Philosophy. New York St. Martins Press. Collinson, P. &. (2000). Fifty Eastern Tihnkers. capital of the United Kingdom Routledge. Greetham, B. (2006). Philosophy. Norwich Palgrave Macmillan. Jamal, T. a. (2009). The Sage Handbook of Tourism Studies. London Sage. OCallaghan, R. et al. (2010, December 21). Saint Thomas Aquinas. Retrieved May 1, 2012, from http//plato.stanford. edu/ Olsen, D. H. and Timothy, D. J. (2006). Tourism, R eligion and Spiritual Journeys. Oxford Routledge. Robinson, H. (2012, Demember 21). Dualism. Retrieved May 1, 2012, from http//plato. stanford. edu/ Warburton, N. (1992). Philosophy. Abingdon Routledge. Zalta, E. (2011, September 21). Aquinas Moral, Political, and judicial Philosophy. Retrieved May 1, 2011, from www. http//plato. stanford. edu/ .

Internet: The New Drug of Choice

meshing The New Drug of Choice It is difficult in these modern multiplication to prevail any mavin who doesnt use the net. I am not speaking of North Americans ( moreover mainly N. Americans), but the rest of the world is quickly catching up. china already has more users than Canada and the US put to unhorseher. According to Internet World Stats (2012), China has 538 million online frequenters and 82. 5% of the Korean population use the Internet. Koreas sharpness rate is third with England leading the way at 84% and Germany at 83%.Canada doesnt halt a big enough population to defy a dent in the number of people using the Internet, but 81% of Canadians do use it, which was a higher penetration percentage than the US at 78. 3%. Currently only 41% of China is using the Internet, once their economy improves and more people get connected, China is likely to chair everywhere the Internet. North Americans might need to start learning Chinese to get their daily news. With so many pe ople online I started to wonder is it rock-steady for us to be using the Internet?Before I delve deeper I wanted to point out that because I am also a frequent Internet user, this question also pertains to me, so I decided that it only made sense to write this report in the first soul. When I decided to start researching almost if the Internet is safe for us, it seemed to me that the best place to research near the Internet would be online. I typed in web browser Is the Internet bad for us? and Does the Internet imprint us crazy? I was shocked at the number of results that popped up. It took some sifting through to find what I needed. It seems that the biggest concern about the Internet is online colony.Some people might think it is the pornography or some of the other content or tear down the technology itself, but these only accompanimentor into the big picture of dependance. After a lesser research I realized that my true question wasnt is the Internet bad for us, bu t the real questions ar why is Internet addiction bad? The Internet is not bad, it has some many advantages over other media and it so very useful in our lives. The Internet and video games help increase choice reaction fourth dimension, spatial skills, scientific problem resolving power skills, multitasking abilities and intelligence (Greenfield, Brannon, and Lohr, 1996).The elderly use the Internet to keep their encephalons stimulated by using it to gain information and keep in contact with family. Actu totallyy everyone is doing that, not just the elderly. The Internet is like drinking wine, if not in moderation, it can be harmful for us, but in moderation the Internet can buzz off a wonderful experience. However, also like wine or any alcohol, the Internet can become an addiction. In fact addiction has become so bad that in China, Taiwan, Japan and South Korea (Cafferty, 2012) treatment centers energise been established to help people with online addiction.Near may home i n the city of Nagoya, the Futoko Shien Center trustworthy 327 individual requests for consultation for online game addiction from the beginning of this year. (Doi, 2012) That is only in one city in one country. China seems to be one of the polish off places I make found in my research. It has become so bad that boot camps have developed to help young help rid their problem. Wired. com have a story in 2010 about a boot camp in China, The Qihang camp promised to cure children of so- annunciateed Internet addiction, an ailment that has grown into one of Chinas most fe atomic number 18d public health hazards. (Stewart, 2010) And according to Scientific American online, as much as 14 percent of urban spring chicken theresome 24 million kidsfit the bill as Internet addicts, according to the China Youth Internet Association. (Mosher, 2011) I myself have find that I am dimly using the Internet more since I bought a smart anticipate last year. I would say I am an addict and I definite ly siret want to counseling, but I am starting to worry. So why do some people think the Internet addiction is a bad liaison if it stimulates the brain and creates intelligence and multitasking abilities, Dr.Grohol director on the Mental Health Net, makes a good point I dont see how they can see the Internet as a disorder, but not look at a bookworm who reads 10 hours a day and not say hes a book addict. (Brown, 1997) The criticism the Internet receives in not a new phenomenon, Psychologists have been canvas the effects of the Internet for almost 20 years. And in the last 20 years Internet use has sky rocketed, meaning effects and studies have increase as well. Psychiatrist Kimberly Young of Saint Bonaventure University in New York State, stock-still designed a self- assessment test in 1998 because of Internet addiction concerns.Numerous studies have linked excessive online use to depression, poor school performance, increased irritability and more impulsiveness to go online. (Mosher, 2011) One problem is that people are losing residue because they get lost in the Internet for hours upon hours and turn into zombies as they deprive their brains and bodies of fuel and rest. Recently in the Japanese newspaper, The Daily Yomiuri a report about online addiction stated A 19-year-old vocational school student recalled how one morning, he woke up at 6 a. . on a sofa, still clutching his mobile phone. crap it I was probably asleep for two hours, he said. Then he leaped up from the sofa and began fiddling with the phone again. Some successions he was so abstracted with the games that he forgot to sleep, he said. (Doi, 2012) One such documented case in Taiwan, a boy ended up in the Asylum later his iPhone exercising reached 24 hours a day. (Dokoupil, 2012) At first I thought that that must be a rare case. But more and more cases like this are being uncovered all over the world.Just recently in American news Jason Russell became famous twice the first time was f or his amazing documentary he aired on YouTube called Kony 2012 which was one of the most viral movies to hit the web clocking more than 70 million views in less than a week. (Dokoupil, 2012) He then became famous again after having a nervous breakdown and marching through the streets naked and scolding to himself rampantly. Before putting the document online Jason was not an excessive user of the Internet, but after his video went viral, he couldnt get enough of his new found addiction.In the first four days after his successful video premiere he only slept 2 hours, which is a probable cause to his breakdown. I personally have never stayed up that long, but I do feel quite bizarre after being online for 10 hours. I have been warned since I was a child that need of sleep will deter my performance at school, work and even sports. But of course most of humans dont spend days at a time online without sleeping. Most normal humans have jobs, although many of our jobs involve the Inter net these days, and still manage our daily lives of chores and eating and sleeping.But I wasnt surprised to find out that most people including myself, I think especially those with smartphones, check their email and favorable sites more often than we realize. Dr. Larry Rosen, professor and olden Chair of Psychology at California State University, surveyed 750 people, a spread of teens and adults and detailed their tech habits, their feelings about those habits, and their scores on a series of measuring stick tests of psychiatric disorders. He found that most respondents, with the exception of those over the age of 50, check text messages, email or their social network all the time or every 15 minutes. More worryingly, he also found that those who spent more time online had more compulsive personality traits. (Dokoupil, 2012) Without being cognisant of it, we above the digital divide are becoming compulsive, needy little onliners. People constantly feel the need to check their Internet for updates on our social sites, email, tweeters and blogs. I myself dont blog or tweet, which I can say cuts some of my time on the net down to a little more of a sane time. It is amazing how quickly my friends reply to any and all emails and social site updates.It is almost as if the message jumped out of their phone and into their eye while they were driving to work. People have become so connected that the Internet has become a distraction and to some, the most important thing in their lives. The author of Is the Internet driving us mad? in Newsweek magazine claims that regardless of age, most people send or receive about 400 texts a month. The average teenager processes about 3700 texts a month. Also many of these same people, two thirds, sense their phone vibrating in their pockets when in fact it is not.Researchers call it phantom-vibration syndrome. It is evident that we have become dependent on the Internet that we drool in anticipation delay for a message or ca ll or any kind of update to fulfill our hourly or for some minutely dose of feeling wanted and or accepted. I myself have felt the phantom-vibration a few times, but I dont think enough to warrant it as a syndrome. I have been witnessing the addiction for the Internet on an everyday basis as everyone around me mostly younger people seem to always have a reason to have their smartphone out.At school, older kids are sending messages to each during class time and even when posing together on their free time. It seems that the Internet provides meliorate conversation than their friends sitting across from them. I cannot say that I am not innocent from this same intervention and have been known to hope online at while waiting for friends to buy their ice cream or something of that nature. We are so dependent on the Internet, not only individually, but also a group. Hurricane Sandy, a terrorise hurricane, hit New York causing more than 150 fatalities.In the November 3rd issue of Newswe eks online magazine released a feature about the Heroes of the Hurricane. One of the reports was of the Heroes who guarded and protect an Internet hub, considered to be very important to the world, because it is one of the fastest connections between world financial centers it maintains Internet connectivity for entire regions of the country. (Keller, 2012) I remember about years ago reading reports that the Internet caused depression and loneliness. I think that depression can be triggered by so many things, especially in those who more prone to depressive feelings.As for the loneliness factor, I always believed that the Internet was addictive because it replaced feelings of loneliness because people are more connected to more people. It is true that it reduces face to face interaction, but it increases interaction with people. Researchers have found that internet use was associated with increased well-being and social involvement. (Kraut, 2002) Because of the Internet I social ize more with people who are not within close distance which makes me feel happier that I can keep in touch with them. I probably have a better relationship with my mother than I did when I lived at home and before smartphones.During the Tohoku earthquakes and Fukushima crisis in 2011 the internet help people all over Japan talk to each other and others from abroad the whole country might have felt lonely or separated from the rest of the world if it werent for the Internet. So what cause these emotional and mental changes in people who absorb themselves with the Internet too much. Besides Internet is just like reading books, watching video recording and listening to the radio in one package. In recent reports, it has been revealed that brain scans hint excessive time online is tied to stark physical changes in the brain (Mosher, 2011).These physical changes caused by the over stimulation of the parts of the brain that deal with attention, multitasking, spatial awareness etc. are e xtracting from the parts of other parts of the brain. Dave Mosher describes the in vogue(p) findings in his online report with Scientific Americas online magazine. One set of images focused on gray social function at the brains wrinkled surface, or cortex, where affect of speech, memory, motor control, emotion, sensory and other information occurs. The researchers discovered several small regions in online addicts brains shrunk, in some cases as much as a 10 to 20 percent.The affected regions included the dorsolateral prefrontal cortex, rostral anterior cingulate cortex, supplementary motor area and parts of the cerebellum. Whats more, the longer the addictions duration, the more pronounced the tissue reduction. The studys authors suggest this shoplifting could lead to negative effects, such as reduced inhibition of inappropriate behavior and diminished goal orientation. But imaging neuroscientist Karl Friston of University College London, who helped pioneer the VBM technique, sa ys gray matter shrinkage is not necessarily a bad thing. The effect is quite extreme, but its not surprising when you think of the brain as a muscle, says Friston, who was not involved in the study. Our brains grow wildly until our early teens, then we start pruning and toning areas to work more efficiently. So these areas may just be pertinent to being a good online gamer, and were optimized for that. Although we can alter our brains through practice like the rest of our body, we still need to have the will power to make these changes. Maybe for many online addicts, the morphing of their intelligence to certain cortex might be rewarding for them.But it is evident that for many of us who need to work and have opposite conversations and have proper behaviour, need to reduce our Internet time. I personally want to keep the grey matter of my brain from shrinking because it is accountable for traffic with speech, memory, motor control, emotion, sensory, and other information. (Dokoup il, 2012) We know that exercise is good for our bodies it has been pounded into us since we were little children. Eat healthy food, exercise 3 times a week, stay apart from sugars etc. , has been taught to us by media, teachers and parents.Now we need to exercise our brains as well. The Internet is one form of exercising certain parts, but we need to exercise all parts of our body. Think about how ridiculous someone would look if they only spent their time pumping iron to make their only their shoulders really big and just did any movement to strengthen their legs. That person would look like a balloon with the string tied to the bottom being their legs. Not only would that person look silly, but probably would fall over when then tried to walk. That is similar with what is slowly happening to our brains with the more time we spend on the Internet.Internet addiction is causing too much exercise on only one part of our brain and not enough on the other. With more and more reports st ressing the problems of Internet addiction, depression, compulsive behaviour, sleep deprivation and lack of memory it is difficult to ignore the issue. Obviously scorning the Internet is not the solution, since it isnt the Internets fault it is the lack of control that we humans possess to control our desire for social acceptance, informational and visual stimuli, and the speed of which we can retrieve these desires.I am sure if the Internet was as slow as it was in 1995, this topic would be moot. But now the evidence is clear and people need help, just like there is help for alcoholics and drugoholics. every last(predicate) users of the Internet, there are few that arent users need to use the Internet sparingly or at least with some control. Limit the amount of time spent on the Internet, especially consistent hours, the brain needs a rest. To help the grey matter in our brains it is important to involve ourselves in opposite conversation for speech. Exercise is also important as it always has to maintain motor control.Memory is one of the most important issues dealing with grey matter acting trivia games or not being dependant on the auto phonebook in our phone is a great way to improve memory. at once I am finished this report will go outside and try to not use the Internet for at least the weekend, not even on my smartphone. Internet addiction is a serious issue that hopefully in the future psychologists and the public will get a better at dealing with. References Bercovici. J. , (July 10. 2012) Were All Internet Addicts, And Were All Screwed, Says Newsweek. Forbes Magazine. Retrieved November 10, 2012 from website http//www. orbes. com/sites/jeffbercovici/2012/07/10/were-all-internet-addicts-and-were-all-screwed-says-newsweek/ Brown, J. (1997). BS detector Internet addiction meme gets media high. Communications Study 421 Being Online. Gackenbach, J. (Phd. ). Athabasca University, 2006 (pp. 101). Carlson, B. , (June 5, 2010). Nicholas Carr on the Superf icial Webby Mind. The Atlantic. Retrieved November 10, 2012 from website http//www. theatlantic. com/ sport/archive/2010/06/nicholas-carr-on-the-superficial-webby-mind/57610/ Cohill, A. , (December 31, 2004). Is the Internet good or bad for us?Design Nine. Retrieved November 10, 2012 from website http//www. designnine. com/news/content/internet-good-or-bad-us Doi, H. , (Oct. 17, 2012) Online gaming addictions growing more serious. Daily Yomuiri Online. Retrieved November 10, 2012 from website http//www. yomiuri. co. jp/dy/ national/T121016001977. htm Dokoupil, T. , (July 9, 2012). Is the Web Driving Us Mad? Newsweek Magazine. Retrieved November 10, 2012 from website http//www. thedailybeast. com/newsweek/2012/07/08/is-the-internet-making-us-crazy-what-the-new-research-says. html Greenfield, P. , Brannon, C. and Lohr, D.

Fv Project Summary of Fasb and Iasb

hold Summary Background The objective of this ejection is to provide counselor-at-law to entities on how they should get the equitable pass judgment of assets and liabilities when indispensable by un mulish meters. This protrude lead non spay when modal(a) esteem standard is filld by IFRSs. word of honor at the September 2005 IASB opposition At the September 2005 meeting, the IASB added the bonnie regard as meters topic to its agenda. The aim of the travail is to provide guidance to entities on how they should measure the sane judge of assets and liabilities when c every(prenominal) for by other(a) Standards.This project go not change when fun carnival pry measuring rod is required by IFRSs. preaching at the November 2005 IASB Meeting The faculty conducted an commandment sitting on the FASBs operative picture of a closing Statement on decent lever Measurements. In sum, the rung re hatfuled the scope of FASBs Fair Value Measurements proje ct as it re latishs to IFRSs and the dos and wonders to be addressed in preparing an IASB moving-picture show Draft and related Invitation to call attention. No finales were made.At a previous meeting, the bill decided to rationalize the FASBs net Statement on Fair Value Measurements as an IASB Exposure Draft with an Invitation to Comment. The appendices in the FASB catalogue dealing with consequential amendments and references to US GAAP pronouncements depart be replaced with proposed consequential amendments and references to IFRSs. The get along with except decided that on that point should be limited changes to the FASBs document. Instead, the Invitation to Comment should discuss any body politics where the senesce disagrees with the FASBs conclusions along with the foundation garment for the disagreement.The faculty expects these argonas to be identified during carte du jour deliberations during the celestial latitude 2005 and January 2006 meetings whilst aim ing toward issuance of the IASB Exposure Draft by April 2006. tidings at the December 2005 IASB Meeting Definition of decorous foster The faculty presented a melodic theme identifying and comparing the differences amid the expositions of decorous think of in the FASBs indite Fair Value Measurements (FVM) standard to the commentary in IFRS.This comparison was meant to go to the tabular array in concluding whether or not to replace the actual IFRS definition of plumb value with the FVM standard definition. The caters over solely recommendation was to replace the current IFRS definition of graceful value with the definition of fair value in the FVM standard. However, the cater made it receive that it was not stating that this definition be utilisation to all instances where fair value is currently mapd in IFRS. This scoping electric outlet is the subject for a separate tidings that would span several be on meetings.The dialog box discussed in detail, the variou s components of the current and proposed definition of fair value in the context of the staffs compend. Although the Board was in overall agreement to proceed with the proposed definition in the FVM standard, the side by side(p) points were renowned Certain Board sections wanted to see the various issues discussed pulled together and presented in some logical manner that would clarify how fair value is begined. As respectd below, the Board was concerned that the proposed definition would ca recitation confusion where this was not the intention. whatsoever Board members were concerned ab show up changing amount to bell as this would change the sum of fair value. This concern seemed to emanate around the treatment of transaction be. The unequivocal watchword of locomote values in the draft guidance was seen by some as problematic. Illustrations were provided indicating that at the time of the transaction the concord terms constitutes both an ledger foundation and v ent value for that specific asset or financial obligation. Others indicated that it was their belief that the current fair value definition already encompasses an takings value legal opinion. Following on from this issue, the ideal of securities industryplace participants is believed by some Board members to be a less superior pronounce to the widely accepted knowledgeable, pull up stakesing parties notion which is more than readily understood to apply to a transaction between two parties without the necessity of the hold upence of a foodstuff. The FASBs rationale for introducing the groceryplace participants notion as a means of excluding to the greatest extent possible, any entity specific factors when ascertain fair value, was famed.The Board will be asked to debate the meaning of the reference foodstuff notion at subsequent meetings. Scope of the Fair Value Measurements Project The Board come acrossed a paper setting out on a Standard by Standard basis, which indi vidual standards should be scoped in or out of this project. That paper was organised into three sections Standards that require fair value touchstone Standards that require fair value bill by reference to another standard Standards that do not require fair value cadence Within each of these sections, the staff made various proposals for the Boards consideration.Overall, the staff recommended not modifying as part of this project existing reliability clauses and practicability excerptions. The staff concluded that such modifications could result in significant changes to current practice and that any changes should be considered on a standard-by-standard basis separately from this project. Standards that require fair value measuring rod The following standards were noted as requiring assets or liabilities to be heedful at fair value in certain circumstances (a) IAS 11 Construction Contracts (b) IAS 16 Property, Plant and Equipment (c) IAS 17 Leases (d) IAS 18 Revenu e (e) IAS 19 Employee Benefits (f) IAS 20 explanation for Government Grants and Disclosure of Government Assistance (g) IAS 26 Accounting and Reporting by Retirement Benefit Plans (h) IAS 33 Earnings per Share (i) IAS 36 Impairment of Assets (j) IAS 38 Intangible Assets (k) IAS 39 financial Instruments Recognition and Measurement (l) IAS 40 Investment Property (m) IAS 41 Agriculture (n) IFRS 1 First-time Adoption of International monetary Reporting Standards (o) IFRS 2 Share-based Payment (p) IFRS 3 Business Combinations and the June 2005 Exposure Draft (q) IFRS 5 Non-current Assets Held for Sale and Discontinued Operations The Board agreed with the staff recommendations (as set out in the observer notes) for each standard except in the following instances IAS 18 the staff concluded that in the instances where an entity received services for dissimilar goods or services, the measuring objective is not un contrastiveiated with the draft FVM standard a nd therefore IAS 18 should be excluded from the scope.The Board noted this issue but indicated a druthers to include IAS 18 within the scope of the FVM Standard as this is a minor part of the fair value requirements in IAS 18. The confusion cause in the securities industry if the Board were to exclude IAS 18 from the project would be undesirable. IFRS 2 due to the grant date model, the Board noted the issue that may arise where an entity measures a share-based repairment transaction by reference to the right instruments granted, not the goods or services received.However, the Board decided to include IFRS 2 within the scope of the FVM Standard on the same basis as for IAS 18. Standards that require fair value touchstone by reference to another standard (a) IAS 2 Inventory (b) IAS 21 The Effects of Changes in Foreign Exchange place (c) IAS 27 Consolidated and Separate Financial Statements (d) IAS 28 Investment in Associates (e) IAS 31 Interests in Joint Ventures (f ) IAS 32 Financial Instruments Presentation and Disclosure (g) IFRS 4 Insurance Contracts (h) IFRS 7 Financial Instruments The Board agreed with the staff recommendation that treatment of the above is not necessary as these standards do not gestate any special requirements to measure assets or liabilities at fair value. Standards that do not require fair value measurement (a) IAS 1 Presentation of Financial Statements (b) IAS 7 Cash Flow Statements (c) IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (d) IAS 10 Events afterwards the Balance Sheet Date (e) IAS 12 Income Taxes (f) IAS 14 element Reporting (g) IAS 23 Borrowing Costs (h) IAS 24 Related Party Disclosures (i) IAS 29 Financial Reporting in Hyperinflationary Economies (j) IAS 30 Disclosures in the Financial Statements of Banks and uniform Financial Institutions (k) IAS 34 Interim Financial Reporting (l) IAS 37 Provisions, Contingent Liabilities and Contingent Assets (m ) IFRS 6 Exploration for and E evaluations of Mineral Reserves With regard to IAS 37, the Board concurred with the staff that the measurement teachings therein are consistent with fair value principles in many respects and went further to state that when the amendments to IAS 37 are finalised, it would add explicit reference to fair value to clarify this issue. Discussion at the February 2006 IASB MeetingThis was a brief session to inform the Board approximately recent in question(p) decisions of the FASB on its fair value measurement standard. No observer notes were provided for this session. The FASB discussed the fair value power structure at its last meeting. FASBs exposure draft had proposed a five- train fair value power structure. The FASB has come to the conclusion that it is concentrated to distinguish directs two to four in the hierarchy. They mother therefore reduced the hierarchy to three levels. The FASB has not made other changes to its proposed fair value guid ance.The staff said that watchword will continue in March. Discussion at the may 2006 IASB Meeting Principles of the fair value measurement project The following principles were tell to the Board as those forming the foundation of the fair value measurement project The objective of a fair value measurement is to determine the harm that would be received for an asset or give to transfer a liability in a transaction between market participants at the measurement date. The definition of fair value and its measurement objective should be consistent for all fair value measurements required by IFRS. A fair value measurement should rebound market haves of the attributes of the asset or liability being measured and should not include views of the reporting entity that differ from market expectations. A fair value measurement should consider the utility of the asset or liability being measured. As such, the fair value measurement should consider the location and the condition of th e asset or liability at its measurement date. The Board concurred with the staff that the above principles form the foundation of the fair value measurement project.Revised definition of fair value In the staffs view, the FASBs revised definition of fair value is substantively similar to the one tentatively approved by the IASB in December 2005. Based on that, the IASB agreed that the revised definition is consistent with the measurement objective. However, some Board members expressed concern about the change to a price kind of than amount. In addition, the revised definition is based on an exit price notion that does not consider prices that exist other than the exit price.As a consequence, other Board members noted that the current definition will require measurement based on a hypothetical market that, for some types of assets and liabilities, cannot be ad in effect(p) with reality and in near(prenominal) cases will result in day 1 gains or losses, which constituents are unc omfortable with. Revised fair value hierarchy The draft fair value measurement statement indicates that valuation techniques used to measure fair value shall maximise the use of observable inputs and minimize the use of unobservable inputs.The hierarchy prioritises the inputs to valuation techniques used to measure fair value based on their observable or unobservable nature. The revised three-level hierarchy is summarised as follows take aim 1 inputs are observable inputs that radiate quoted prices for identical assets or liabilities in active markets the reporting entity has the ability to access at the measurement date. Level 2 inputs are observable inputs other than quoted prices for identical assets or liabilities in active markets at the measurement date. Level 3 inputs are unobservable inputs, for example, inputs derived by means of extrapolation or interpolation that cannot be corroborated by observable data. However, the fair value measurement objective remains the same . Therefore, unobservable inputs should be adjusted for entity information that is inharmonious with market expectations. Unobservable inputs should too consider the risk premium a market participant (buyer) would demand to hit the inherent uncertainty in the unobservable input.IFRSs currently does not have a single hierarchy that applies to all fair value measures. Instead individual standards indicate preferences for certain inputs and measures of fair value over others, but this guidance is not consistent among all IFRSs. The Board agreed with the staffs conclusion that the revised hierarchy in the draft fair value measurement statement is consistent with the principles discussed above and that the hierarchy in the draft fair value measurement statement represents an improvement over the disparate and spotty guidance currently in IFRSs.Unit of account and fair value measurements The Board agreed that it is not appropriate or practical to provide detailed guidance on the unit of account within the fair value measurement project. Determining the appropriate unit of account is a critical element of history and is not always consistent from one asset or liability to another or from one type of transaction to another. Determination of which market The Board agreed with the FASBs conclusion to adopt the principal market view.While this will result in a change from the most preferential view currently in IFRS, the principal market view more accurately reflects the fair value measurement objective and provides a more representative measure of fair value by giving preference to highly liquid markets over less liquid markets. Transaction price presumption At the December 2005 meeting, the IASB tentatively agreed the fair value measurement objective was an exit price.The December discussion highlighted the conceptual difference between transaction price (what an entity would pay to buy an asset or receive to assume a liability) and an exit price objective (what an entity would receive to treat an asset or pay to transfer a liability). The staff concluded that an entity cannot presume an entry price to be equal to an exit price without considering factors specific to the transaction and the asset or liability. As a consequence, the staff plans to bring a separate discussion of day 1 gains or losses to the Board at a future meeting.The Board shared the concerns of the staff that if a transaction price were presumed to be fair value on initial measurement, entities might not sufficiently consider the differences between an entry transaction price and an exit fair value. As such, IFRSs should require an entity to consider factors specific to the transaction and the asset or liability in assessing if the transaction price represents fair value. Fair value within the bid-ask spread Entities often transact somewhere between the bid and ask pricing points, particularly if the entity is a market maker or an influential investor.However, practise of the rule in IAS 39 results in consistency across entities without consideration of entity specific factors that may influence where within the bid-ask spread the entity is likely to transact. Further, the rule creates a bright-line in quoted markets, thus limiting the use of judgement and subjectivity in the fair value measurement. The Board agreed to add a discussion to the invitation to rendering that communicates agreement with the principle in the draft fair value measurement statement.The discussion would state that it is not appropriate to use a consistently applied pricing convention as a practical expedient to fair value. This recommendation would result in both a change to existing IFRSs as well as a departure from the FASBs draft fair value measurement statement. Transaction and transportation cost in measuring fair value The definitions of transaction type be vary in IFRSs, though such costs are consistently excluded from fair value measurements.Currently, IFRSs are not fix (with the exception of IAS 41) whether transportation costs are an attribute of the asset or liability, and as such should be included in the fair value measurement. The draft fair value measurement statement defines transaction costs as the incremental direct costs to transact in the principal or most advantageous market. Incremental direct costs are costs that result directly from, and are essential to, a transaction involving an asset (or liability).Incremental direct costs are costs that would not be incurred by the entity if the decision to sell or dispose of the asset (or transfer the liability) was not made. In the draft fair value measurement statement, the FASB concluded the fair value measurement of the asset or liability shall include only those costs that are an attribute of the asset or liability. The FASB concluded transaction costs are an attribute of the transaction, not an attribute of the asset or liability.Therefore the fair value measurement of the asset or liability shall not include transaction costs. The staff agreed with the conclusions in the draft FVM statement regarding transportation and transaction costs. However, the staff concluded that the discussion of what types of costs are attributes of the asset or liability could be more robust as it is difficult to decipher justification for varied treatment of transaction costs and transportation costs in the current discussion in the draft FVM statement.As such, the staff recommended, and the Board agreed that the invitation to explanation should include a question on the sufficiency of the discussion of costs that are attributes of an asset or liability, such as transportation costs. Discussion at the June 2006 IASB Meeting The Board continued its discussion of Fair Value Measurements (FVM), and reviewed the current project plan and due process steps. In addition, the Board had a preliminary discussion on accounting for day-one gains. Project Plan and Due ProcessThe Board wa s briefly modifyd on the developments from the last FASB meeting at which the Fair Value Measurements project was discussed. The Fair Value Measurement project was added to the IASBs agenda in September 2005. At that time, the Board decided that they would expose the FASBs final FVM standard as an IASB exposure draft, not modifying it other than change US GAAP references to the appropriate IFRS references. Since then, the staff has become aware of concerns raised by IASB constituents.These include As the FVM project could change how fair value is measured, some judge that proceeding directly to an IASB exposure draft based on the final FASB document could potentially hornswoggle-cut the IASBs due process requirements. As the FASB document applies a different concept of fair value from that of older IFRSs, constituents have problems with the conceptual reasons for changing to an exit price objective of fair value, particularly when an entity have no intention to sell an asset. A s fair value is being increasingly used, fundamental questions regarding relevance and reliability need to be debated prior to completion of the project. Due to these concerns, the staff presented the Board with two alternative solutions The firstborn-class honours degree alternative was a modified plan which still would include issuing the FASB document as an exposure draft, in addition to conducting field visits and round-table discussions to get input from constituents. The second alternative was to issue the FASB document as a discussion paper, deliberate this, and then issue an exposure draft.This would stop the Board more time and more flexibility to address the concerns raised by constituents and hopefully a better standard, even if this route will be a lengthy one. The Board expressed sympathy for the concerns raised by the constituents, and the legal age of Board members agreed that this would require a shift from the current project plan to alternative two which is to issue the FASB document as a discussion paper. However some Board members thought that the second alternative should be avoided as this would delay the issuing of a final standard too long.Alternative two will result in a final IFRS in late 2008 or early 2009. Some Board members thought that it would be crucial to communicate with constituents that this move away from the current project plan and towards the discussion paper route would take more time, but that it would be done to ensure the evoke of constituents. The Board voted in favour of alternative two, resulting in a discussion paper being issued based on the FASB document. The Board noted that a final plan could not be put together before the final FASB document is issued. As long as the FASB have not issued their final document including, e. . their application guidance, the IASB will not have a public document accessible for issuing as the IASBs discussion paper. Day-one Gains and Losses Fair value, as defined in the F ASBs document is an exit price. As a result of the Boards tentative approval of the exit price definition of fair value, in circumstances where an asset or a liability is required to be measured at fair value on initial recognition, a day-one gain or loss may be recorded. The staff believes the existing guidance in IAS 39 is inconsistent with the exit price notion as tentatively approved by the Board, and therefore need amendment.The Board was asked whether they would consider To make only consequential amendments to conform IAS 39 with the guidance in the Fair Value Measurement statement and to leave the current guidance on recognition of day-one gains and losses in IAS 39. Making consequential amendments and change the existing guidance in IAS 39. The Board decided that they would not make any amendments right now, but rather put a question in the discussion paper whether this should be dealt with in a separate project or as a part of the Fair Value Measurement project.Septembe r 2006 FASB issues fair value measurement standard On 15 September 2006, the US Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 157 Fair Value Measurements. FAS 157 provides enhanced guidance for using fair value to measure assets and liabilities. It applies whenever other standards require (or permit) assets or liabilities to be measured at fair value. FAS 157 does not expand the use of fair value in any new circumstances. Click for FASB News Release (PDF 19k) Special issue of the Heads Up Newsletter Summarising FAS 157 (PDF 218k) Some points about FAS 157 Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts. Fair value should be based on the assumptions market participants would use when pricing the asset or liability. FAS 157 establishes a fair value hierarchy that prioritises the inf ormation used to develop those assumptions.The fair value hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data, for example, the reporting entitys own data. Fair value measurements would be separately disclosed by level within the fair value hierarchy. FAS 157 is effective for financial statements issued for fiscal years beginning after 15 November 2007, and interim periods within those fiscal years. Early adoption is permitted. FAS 157 may be downloaded from FASBs Website without trust. The IASB has on its agenda a project on fair value measurement.It is one of the convergence projects with the FASB. This means that the IASB and the FASB plan to have similar, if not identical, definitions and guidance relating to fair value measurements. The IASB plans to issue a discussion paper in the fourth quarter of 2006 that will indicate the IASBs preliminary views on the edible of FAS 157 identify differences between FA S 157 and fair value measurement guidance in existing IFRSs and invite signalizes on the provisions of FAS 157 and on the IASBs preliminary views about those provisions.Discussion at the September 2006 IASB Meeting The staff noted that FAS 157 Fair Value Measurements was issued on 15 September 2006 (see IAS Plus News Story of 19 September 2006). The IASB staff can now complete the preparation of an IASB Discussion Paper on Fair Value Measurements, which will comprise FAS 157 excerpts of existing FVM guidance in IFRSs and an Invitation to Comment that expresses the Boards preliminary views and requests constituent input on certain matters Non-performance riskThe Board noted that IFRSs currently do not discuss non-performance risk in relation to the fair value of liabilities. IAS 39 requires the fair value of a financial liability to reflect the credit quality of the instrument. Reflecting credit quality in the fair value measurement of a financial liability effectively causes th e fair value measurement to reflect the risk that the obligation will not be fulfilled. FAS 157 extends this principle to the fair value measurement of both financial and non-financial liabilities.It was noted that non-financial liabilities include both credit risk (which related to the financial component) and non-performance risk (which related to the activity). After some discussion, the Board agreed to include a preliminary view in the invitation to comment agreeing with the concept that the fair value of a liability should reflect the non-performance risk relating to that liability (in addition to credit risk). Issues in the Invitation to Comment Entry and exit pricesThe Board agreed that the Invitation to Comment should discuss the concepts of entry and exit prices without stating a preliminary view. The Discussion Paper will address two views without stating a preference. The discussion note that the notion of a price established between a willing buyer and a willing seller m atters only when one is shifting markets. In many IASB standards, fair value is used to mean an exit price in a few (such as IFRS 3, IAS 39, and IAS 41), the phrase is used to mean an entry price.Board members found using the same phrase to communicate two different measurement objectives confusing. Board members noted that they might need to reassess the measurement objective in IFRS 3, IAS 39, and IAS 41 should they adopt the approach in FAS 157 paragraph 17(d), which allows the use of a price other than the transaction price to represent fair value if the transaction occurred in a market other than the principal or most advantageous market. The staff proposed wording on the fly, which they will bring back to the Board. Principal or most advantageous marketIAS 39 requires an entity to use the most advantageous active market in measuring the fair value of a financial asset or liability when multiple markets exist, whereas IAS 41 Agriculture requires an entity to use the most releva nt market. By comparison, the FAS 157 requires an entity use the principal market for the asset or liability. In the absence of a principal market for the asset or liability, the entity uses the most advantageous market. The principal market is the market in which the reporting entity would sell the asset or transfer the liability with the greatest volume and level of activity for the asset or liability.The most advantageous market is the market in which the reporting entity would sell the asset or transfer the liability with the price that maximizes the amount that would be received for the asset or minimizes the amount that would be paid to transfer the liability, considering transaction costs in the respective market(s). In every case, the principal (or most advantageous) market (and thus, market participants) should be considered from the perspective of the reporting entity, thereby allowing for differences between and among entities with different activities.The Board reconfirm ed their view taken in May 2006, namely When multiple markets exist for an asset or liability, the fair value measure should be based on the principal market for that asset or liability. If there is no principal market, the most advantageous market should be used. In both instances, the principal or most advantageous market should be determined from the perspective of the reporting entity. A question will be asked on this topic in the Invitation to Comment. Calling level 3 measurements fair valueThe Board noted that FAS 157 establishes a three level hierarchy for categorising and prioritising inputs for fair value measurements. Level 3 of the hierarchy is unobservable inputs for the asset or liability (that is, they are not observable in a market). Unobservable inputs are used to measure fair value only to the extent that observable inputs are not visible(prenominal). These inputs reflect the reporting entitys own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).When Level 3 measures are used, FAS 157 prescribes additional disclosures. The Board agreed that the disclosure requirements in FAS 157 highlight sufficiently the nature of the fair value measurement so that users of financial statements can develop a view of the potential uncertainty of that measurement. Therefore, it would not be necessary to include in the Discussion Paper a discussion of whether measurements comprised of significant Level 3 inputs should be labelled something other than fair value. Block premiums and discountsThe Board agreed to address the issue of whether block premiums and discounts should be discussed in the Discussion Paper. Such premiums or discounts may arise when a larger-than-normal quantity of an asset or liability is being sold in a market. Board members noted that the requirement to use the Price x Quantity formula is limited to Level 1 measures, and that this opens the treatment o f block purchases and sales to abuse, since it could be argued that these should be measured using Level 2 or 3 inputs.Board members as well agreed that there is a need to distinguish illiquidity caused by the size of the block from that caused by the thinness of the market. The staff will draft a question on this issue for inclusion in the Invitation to Comment. Day 1 gains and losses The Board noted that an exit price measurement objective could have significant implications on certain fair value measurements in IFRSs, particularly in IAS 39 on initial recognition. They reasoned that it is authorised to highlight situations where the guidance in FAS 157 differs significantly from current IFRSs.Further, convergence on the day-one gain matter is a high-profile issue to many large financial institutions and is an theatre where the staff expects many comments. The Invitation to Comment will contain a discussion and question on the transaction price presumption. US GAAP-specific mat erial contained in FAS 157 The Board agreed that, in the interests of timely publication, they would not alter FAS 157 in any way for the purposes of the Discussion Paper and Invitation to Comment, and that it would therefore have US GAAP-specific material. The Invitation to Comment would note that any Exposure Draft would be IFRS-specific.Next steps On a poll, 12 Board members voted to issue the Invitation to Comment and Preliminary Views, and one Board member abstained, pending resolution of the discussion of entry and exit prices. The Discussion Paper is scheduled for publication in late 2006. November 2006 Discussion Paper Issued On 30 November 2006, the IASB published for public comment a Discussion Paper on Fair Value Measurements. The Discussion Paper sets out the IASBs preliminary views on how to measure fair values when fair value measurement is already prescribed under existing IFRSs.It does not propose any extensions of the use of fair values. The DP is built around FASBs recently issued SFAS 157 Fair Value Measurements. SFAS 157 establishes a single definition of fair value together with a framework for measuring fair value for financial reports prepared in accordance with US GAAP. Click for IASB Press Release (PDF 53k). The Discussion Paper will be available without charge on the IASBs website starting 11 December 2006. Comment deadline is 2 April 2007 extended to 4 May 2007. The IASB plans to publish an Exposure Draft in 2008.Discussion at the January 2007 IASB Meeting appurtenance of the comment deadline on the Discussion Paper The staff reported that several constituents had asked the Board to extend the deadline for comments on the Boards Discussion Paper Fair Value Measurements. The constituents highlighted that the comment period coincided with the financial reporting season for those with calendar year ends and asked for more time so that an important and complex document could receive the attention it deserved. The Board agreed unanimousl y to extend the deadline for comments to Friday 4 May 2007.Discussion at the September 2007 IASB Meeting The staff communicate the Board that the FASB had formed a Valuation resourcefulness Group (VRG). The purpose of the VRG is to provide the FASB with input for clarifying the guidance related to the application of the principles in SFAS 157 Fair Value Measurement when fair value is required or permitted under US GAAP. The VRG is drawn from accounting firms, valuation advisers, preparers, users, regulators and standard setters. The first meeting of the VRG is planned for 1 October 2007. Issues raised at that meeting will be brought to the October FASB meeting.The IASB staff noted that any decisions made by the FASB are likely to have implications for valuations performed under IFRSs because constituents may apply the US guidance in the absence of IFRS guidance. The staff will keep the Board informed of the project. No decisions were made. Discussion at the October 2007 IASB Meet ing The staff presented their compendium of comments received on the IASBs discussion paper on fair value measurement. The discussion paper was issued as a wrap around of FASB Statement of Financial Accounting Standards No. 157.The complete psychoanalysis is available in the Observer Notes section on the IASBs website (agenda Paper 2C). The staff asked the Board to do the following consider the main points raised in the comment letters (136 received) affirm the project objectives and approve the staffs preliminary project plan. The main points raised in the comment letter by constituents included (please refer to Agenda Paper 2C for a detailed analysis) General agreement to that the fair value measurement project is needed Concerns about how to provide guidance on determining fair value when it is not clear in hich circumstances The interaction between the fair value measurement project and the conceptual framework project (in particular, phase C which covers measurement) T he view that in many situations an entry price notion is superior to an exit price notion Fair value is more akin to a heading for a family of measurement bases and accordingly terms should be used which are more descriptive (that is, more clearly word what the Boards intended measurement basis in that situation is) and With regard to measuring liabilities at fair value, the respondents raised concerns about the application of a transfer notion kinda of a settlement notion and asked for guidance as to the meaning of non-performance risk. Regarding the interaction between this project and the Conceptual textile project, some Board members noted that the outcome of this project is only one of a number of possible measurement bases that will be in the revised Framework. Consequently, the impact on the Framework project is only minor. The staff confirmed that it consults with staff of the Framework project on a regular basis. Some Board members observed that the notion entry price should be as well defined as exit price. Staff noted that this is part of the proposed project plan. No decisions were made.The Board was also asked to agree on the following project objectives Development of principles and measurement guidance for an exit price measurement basis and Completion of a standard-by-standard review of fair value measurements permitted or required in IFRSs to asses whether each standards measurement basis is an exit price. If the Board does not agree, will it agree to decide on a case-by-case basis whether or not to develop measurement guidance for those other measurement bases. The Board agreed to both objectives. On the second bullet point, it was clarified that this analysis will not lead to the development of additional guidance for those measurement bases that will be identified as not fitting in the definition of fair value for the purpose of the fair value measurement project. However, the Board noted that a working definition for fair value must first be agreed on before the analysis can be done. Additional Discussion at the October 2007 IASB MeetingThis was an education session and accordingly no decisions were made. The session was led by representatives of the valuation profession to illustrate practical valuation concepts and issues (the complete presentation Agenda Paper 11A can be obtained from the Observer Notes section on the IASB Website). The focalize was on the valuation methodologies used in the measurement of tangible and intangible non-financial assets. The background of the session was the Discussion Paper on Fair Value Measurements that was issued by the IASB in November 2006. The main topics of the presentation were Value concepts in IFRSs The purchase price allocation process Overview of valuation methodologies (that is cost approach, market approach, income approach) The presenters main focus was the valuation requirements resulting from a business combination and what are the factors valuation profes sionals consider in such transactions. Although this was an education session only the Board showed particular interest in certain topics of the presentation If and how appraisers exclude entity-specific factors from their valuation models Customer-related intangible assets (separation and assumptions used in valuation) Consideration of tax in the valuation process Separation and valuation of contingent liabilitiesOn the last point, the representatives of the valuation profession admitted that they have difficulties identifying all contingent liabilities and how to value them based on a transfer notion (that is what would an entity have to pay to pass on the risk in contrast to a settlement notion). Discussion at the November 2007 IASB Meeting The staff began the morning session by communicate the Board about the latest developments in relation to the implementation of SFAS 157 Fair Value Measurements which is the basis for the Discussion Paper published by the IASB. The devel opments included the recession of the effective date of SFAS 157 for non-recurring measurements (for example in business combinations).It was noted that these developments would have no impact on the IASB project on fair value measurements. The staff presented its preliminary definitions of current exit price and current entry price for assets and liabilities that will be used in the standard-by-standard review. The Board and the staff reiterated that they do not want to change the measurement within the standards. The goal of the analysis carried out by the staff would be to find out which measurement attribute the Board and its predecessor (the IASC) had in mind when using the term fair value. The preliminary working definitions of the staff are as follows Assets Current entry price The price that would be paid to buy an asset in an orderly transaction between market participants at the measurement date. o Current exit price The price that would be received to sell an asset in a n orderly transaction between market participants at the measurement date. Liabilities o Current entry price The price that would be received to incur a liability in an orderly transaction between market participants at the measurement date. o Current exit price I (transfer notion) The price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. o Current exit price II (settlement notion) The price that would be paid to settle a liability in an orderly transaction at the measurement date.At the request of a Board member staff confirmed that possible components of fair value will be addressed in later stages of the project. The staff also confirmed that it will involve practitioners to gain insight into current valuation practice in the specific circumstances. The Board had a short discussion on certain aspects of fair value measurement and was informed by staff that some of the issues will be discussed at the Decemb er Board meeting. The Board agreed on the preliminary definitions of current entry price and current exit price for assets and liabilities and that staff should not consider other measurement bases for the purpose of the standard-by-standard review.Discussion at the December 2007 IASB Meeting The purpose of this session was to continue the deliberations on the issues in the Fair Value Measurements Discussion Paper and to present an analysis of the market participants view under SFAS 157 compared to the knowledgeable, willing parties in an arms length transaction in IFRSs. After staff review of the two approaches, the Board was asked if it agrees with the staff analysis on the market participants view. Some Board members raised concerns about the possible differences of the notion market participants view in comparison to a knowledgeable, willing party. The staff noted that they see no differences in content.One Board member asked why a change in terminology would then be necessary a s constituents are familiar with the notion of a knowledgeable, willing party. Other Board members said that the document must make clear that the terms are interchangeable. After this the Board discussed what a market is and whether, for certain transactions, one can assume a market exists if, for example, actually only two parties are acting. As no definition of market was provided, the Board asked the staff to develop an analysis. As all further discussions depend on the outcome of that analysis the Board agreed to postpone discussion of the other items in the agenda paper to a later Board meeting. No further decisions were made. Discussion at the March 2008 IASB MeetingWhether the fair value measurement project should have a working group or other type of specialist informatory group The Board has on its agenda a project on fair value measurement that aims to provide guidance on how to determine fair value if a standard requires or allows fair value measurement. The staff infor med the Board that it worked under the assumption that a working group would not be required as there is an overlap with existing working groups that could be involved as required. On further reflection, the staff has concluded that this approach does not work as it proved difficult to involve the other working groups without a clear mandate.The staff also believes that it would not be necessary to set up a formal working group but instead to establish a technical advisory group (TAG) that could work on a informal, as-needed basis. Information exchange could be done in person or via electronic communication. However, the IASB Due Process Handbook requires the Boards consent for not establishing a working group for a major project. One Board member raised the question whether the Valuation Resource Group of the FASB could be involved. The staff answered that this group would interpret and implement SFAS 157, the US standard providing fair value measurement guidance. The Board agreed not to establish a working group, but to form a technical advisory group instead. Discussion at the April 2008 IASB MeetingRepresentatives of the International Valuation Standards mission (IVSC) presented an education session to the Board on four valuation issues. No decisions were made at this education session. The four issues presented by the IVSC delegation were What is the difference between price and value? Is there a valuation difference between an entry and an exit price? Highest and best use What makes the market? What is the difference between price and value? The representatives made clear that in their view price is the amount agreed on in a transaction while value is the outcome of a valuation. In practice, most valuations assume a transaction but, depending on the purpose of the valuation exercise, a value could also be entity-specific.It was made clear that in many cases price and value would result in (nearly) the same number. It was also noted that the IVSC sta ndards use three types of valuation with two of them taking a market view and one of them being an entity-specific approach which could possibly result in different amounts for the same valuation object. Some Board members were confused by the terminology used by the presenters and it was agreed that this could be the cause for much confusion within the constituency and that any communication by the Board must clearly articulate what they mean. One Board member noted that value must always be accompanied by an adjective as people understand different things in different situations.Other Board members were confused about where the difference in amounts results from. The IVSC representatives explained that there are many reasons (for example, synergies). Is there a valuation difference between an entry and an exit price? The delegation locomote then on to the second question. The representatives explained that the profession holds the view that for non-entity-specific values entry a nd exit price for the same market should be the same. Often a perceived difference results because entry price is determined on a different market than the exist price. The Board had a lengthy discussion on that issue with a view on the guidance in US GAAP.Highest and best use The highest and best use is terminology from the US GAAP standard SFAS 157 Fair Value Measurements that assumes an entity would also use its asset the best way it can. It was highlighted that the SFAS 157 definition is very similar to the IVSC one. It was noted that this is not a different type or basis of value and that it is inherent in any basis that requires the estimate of an open market transaction. Some Board members expressed their doubt that this always could be assumed for liabilities. What makes the market? The representatives explained that there is an opinion that fair values could only be made where active markets exist.They made it clear that in their view this is not the case. The valuation pro fession assumes as long as there is enough evidence to establish a valuation it is assumed that a market exist even if the degree of reliability is lower than that for a market with frequent transactions. They would not necessarily link value and liquidity. The Board showed interest in the valuation for some of the instruments where markets have contracted recently and had some debate on that point with the representatives. The Chairman closed the session by asking the IVSC representatives if they have experts on valuing liabilities that could participate in the planned IASB technical experts group.The representatives confirmed that such experts would be available to participate in the group. Discussion at the May 2008 IASB Meeting Discussion of the Meeting of the IASB Expert Advisory Panel on Valuing Financial Instruments in Illiquid Markets The issue was added to the agenda with short notice and no observer notes were available. The staff informed the Board that the Financial Stab ility Forum has established an expert advisory table to assist the IASB in enhancing its guidance on valuing financial instruments when markets are no longer active. In addition the staff noted the following The first meeting will take place on 13 June 2008. At the first meeting the panel will decide on the form of guidance issued, e. g. est practice guidance or input for amendment of standards. The duration of the panel is expected to be two or three months. June 2008 IASB Forms an Expert Advisory Panel on Valuing Financial Instruments in Inactive Markets On 5 June 2008, the IASB formed an expert advisory panel on valuation of financial instruments in inactive markets, in result to Recommendations made by the Financial Stability Forum (FSF). The new panel will assist the IASB in reviewing best practices in the area of valuation techniques, and formulating any necessary additional practice guidance on valuation methods for financial instruments and related disclosures when ma rkets are no longer active.Organisations participating in the panel include AIG (American International Group) Basel Committee on Banking Supervision BNP Paribas Capital International seek Inc. Citigroup Deloitte Deutsche Bank Ernst & Young Financial Stability Forum Fitch Ratings Goldman Sachs HSBC International Association of Insurance Supervisors International Organization of Securities Commissions (IOSCO) KPMG Pioneer Investments PricewaterhouseCoopers Swiss Re and UBS. FASB will have a staff observer. The first meeting of the panel will take place on 13 June 2008 in cliquish session. A summary of the meeting will be presented to the IASB at its June 2008 meeting and will be published on its website. More Information on IASBs website. Related resources are available on our Credit Crunch Page.Discussion at the June 2008 IASB Meeting picFair Value Measurements Expert Advisory Panel on Valuing Financial Instruments in Inactive Markets Meeting update The staff presented a summary of the first meeting held on 13 June 2008 of the Expert Advisory Panel. The staff noted that the purpose of that meeting was to identify the issues arising on valuing financial instruments when markets are no longer active and that possible solutions will be discussed at future meetings. In addition the staff noted the following No decision was made regarding the form of guidance the panel will provide, e. g. best practice guidance or input for amendment of standards. Subsets of the issues identified will be discussed by a subgroup of panel members at the next meetings in July (measurement issues) and August (disclosure issues). Meeting dates have not yet been confirmed. The meetings will be held in private sessions with public updates being provided at the July and September Board meetings. The last meeting is expected to be in September 2008. Updates on the activities of the panel are also available on the IASBs website. Discussion of the Fair Value Measurements Project Followi ng the joint IASB-FASB meeting in April 2008 the Board discussed the way forward in this project. At the joint meeting the IASB decided not to re-debate all aspects of the Fair Value Measurement discussion paper (the DP), i. e. ot to fully re-debate FAS 157 Fair Value Measurements on which the DP is based. Instead the Board agreed to redeliberate certain areas of confusion or areas in which FAS 157 had proved difficult to apply. The staff presented an analysis of issues raised in the DP and provided recommendations on whether a particular issue should be redeliberated or not. Technical aspects of fair value measurement were not discussed at this meeting. The Board agreed to discuss further the topics listed below. These topics will be redeliberated mainly because the Board did not express a preliminary view in the DP and/or comments received on the DP indicated a need for further discussion The exit price measurement objectiveThe Board agreed to consider both entry and exit notions of fair value measurement based on the standard-by-standard review currently performed by the staff. The market participant view In general the Board reaffirmed its preliminary view in the DP. However, the staff was asked to improve the wording in order to address concerns raised by constituents. In particular, it should be clarified how to apply the market participant view in cases where no market exists (for example, liabilities that cannot be transferred). Transfer vs. settlement of a liability The Board agreed to a staff analysis that this is an important cross-cutting issue for other Board projects, particularly, amendments to IAS 37.Transaction price and fair value at initial Day one gains and losses This issue is considered to be interrelated with the entry vs. exit price issue. The principal (or most advantageous) market The Board reaffirmed the preliminary view in principal but noted that questions about the practical application needs to be resolved. Valuation of liabiliti es Non-performance risk There seemed to be a broad consensus to reaffirm the preliminary view that non-performance risks needs to be considered when measuring the fair value. However, the majority of Board noted that this is an important cross-cutting and that there are unresolved issues with regard to presentation (of the counter-entry) and disaggregation. Highest and best useThe staff intends to address comprehensively all issues relating to different markets. Bid-ask spreads applicability of mid-market pricing to all levels of the hierarchy? The staff noted that the Board still needs to reach a preliminary and that the question of which transaction costs are to be included will be addressed in this context. Issues not discussed Disclosures Redeliberation in light of current market environment Application guidance Redeliberation in light of current market environment Topics not to be redeliberated The Board decided not to redeliberate the following five topics 1. Attributes (ch aracteristics) specific to an asset or liability 2.Whether transaction costs are separate from fair value The staff intends to discuss any outstanding issues in connection with bid-ask spreads. (this sentence relates to bullet 2) 3. Three-level fair value hierarchy Accepted as described in the Discussion Paper without any further deliberations 4. The prohibition of blockage factor adjustments at all levels of the hierarchy The Board had a thorough debate on this issue. One Board member emphasised that the majority of constituents disagreed with the preliminary view expressed in the DP. Finally, there seemed to be a consensus not to redeliberate the issue but to deal with the concerns in the feedback statement.The staff was asked to review the comments received to ensure that the Board has not befuddled anything in reaching the preliminary view. 5. The unit of account for financial assets and liabilities The staff noted that the topics not to be discussed by the Board are broadly co nsistent with the principles in IFRSs and that they can therefore be addressed in the exposure draft in a way that considers the concerns raised by constituents and is consistent with FAS 157. Discussion at the July 2008 IASB Meeting Expert Advisory Panel on Valuing Financial Instruments in Inactive Markets Meeting update The project manager on the fair value measurement project gave an oral update on the activities of the expert advisory panel.The purpose of this panel is to assist the IASB in reviewing best practices in the area of valuation techniques as well as formulating any necessary additional guidance on valuation methods for financial instruments and related disclosures when markets are no longer active. The panel or subgroup met three times. At the kick-off meeting the panel identified specific issues that panel members felt must be addressed (such as constrained transactions, the use of pricing services, illiquid markets). It was noted that there seemed to be consistenc y in applying the fair value measurement requirements in IAS 39 despite the use of different techniques. The staff informed the Board that there will be a draft document to be discussed end of July on those issues, but that it is not clear yet who will publish it. The panel would then turn to appropriate disclosures with the aim to have an exposure draft published in Q4/08.It was noted that there would be ongoing communications with the consolidations project team. Discussion at the July 2008 IASB Meeting At this session the staff asked the Board to decide on a definition of fair value what is the measurement object for items with a measurement basis currently referred to as fair value? The staff acknowledged that some aspects of fair value have not been discussed yet, but will be brought to the Board at future meetings (for example, principal market and day-one gains/losses). Staffs view, however, is that whether fair value means an entry or exit price can be decided separately. T he staff then turned to the standard-by-standard review as requested by the Board.This review had been requested to help the Board to decide whether To retain the term fair value and define it appropriately, or To replace the term fair value with more specific terms more appropriate in the individual context. It was noted that a consistent definition of fair value might lead to fewer instances where the Board would require or permit its use. It was also highlighted that a precise definition of fair value would help to ensure proper application where it is required or permitted. The Board had a lengthy discussion about whether entry and exit price would be the equal for the same item on the same date in the same market.Also, the Board discussed which market an entity should refer to in measuring fair value and whether an exit price could include exit by consumption of assets. Board members expressed a range of views on these issues. No clear consensuses were reached. Some Board mem bers observed that if the Board cannot clearly define what fair value means, it would be even more difficult for constituents in applying IFRSs. Board members said that some of the issues that are to be brought back for discussion at future meetings must be resolved before the Board can agree on a definition of fair value. The staff also asked the Board to consider whether to keep the term fair value or retire from it. The Board seemed to be split on that issue.The Board discussed whether, in measuring the exit-price fair value of an asset the entity is using, the measurement should take viewpoint of the entity or of an free market participant. Board members views varied, and no decision was reached. The staff distributed a flow chart which was not part of the observer notes that was intended to facilitate the discussion. The Board decided that, once fair value is precisely defined, each reference to fair value in IFRSs should be assessed in relation to the definition. Where fair value as used in an IFRS is not consistent with the agreed definition, the term should be replaced with a more descriptive term.Discussion at the September 2008 IASB Meeting Credit Crisis Proposed amendments to disclosure requirements please see separate project page on Amendments to IFRS 7 Credit Crisis Discussion at the September 2008 IASB Meeting Expert Advisory Panel on Valuing Financial Instruments in Inactive Markets Update The staff presented the Board with an update on the work of the expert advisory panel formed in response to recommendations from constituents. The panels task is to develop best practice guidance on measurement and disclosures for financial instruments in inactive markets. It was noted that the panel had met six times and will meet again in October. One single document would be published covering both measurement and disclosure. A draft report has just been posted on the IASBs website. The staff informed the Board that although comments would be solicit ed until 3 October, comment letters would not be published on the IASBs website.Asked by a Board member, the staff confirmed that this non-mandatory guidance would be considered when developing the fair value measurement standard and, hence, might become mandatory in the future. Discussion at the September 2008 IASB Meeting Fair Value Measurements Exposure Draft The staff introduced the session by highlighting the objectives and timeline. The purpose of the session was to seek the Boards decision on Whether a fair value measurement exposure draft should state that fair value reflects the highest and best use of an asset and Whether blockage factors should be excluded from fair value measurement. Blockage factors The staff started with the second issue on blockage factors.The staff highlighted that it only sought the Boards input on this type of discount, not on other discounts or premia. The staff defined a blockage discounts as a discount that represents a discount to the quoted price of an instrument (usually lawfulness securities) to reflect the reduction in the price if the entity were to sell a large holding of instruments at once. The Board had a lengthy debate on this. Some Board members were concerned about ignoring blockage factors as they would represent a real economic phenomenon. Others were of an opposite