Dr Jae K. Shim

Time Value of Money and Fair Value Accounting

Dr Jae K. Shim

Fair values are more common in financial reports because fair values have increased in business importance in recent years. Increasingly elaborate financial instruments and risk management practices have created financial statement elements for which historical cost is almost irrelevant, and fair value, and fluctuations in fair value, are extremely relevant. According to the FASB’s recent guidance on fair value measurements ASC820- 10-5 (FAS-157, Fair Value Measurements), Level 3 hierarchy accepts fair values estimates based on present value of expected future cash flows. Furthermore, CPAs must have a working knowledge of future value and present value concepts because of their application to numerous types of business events and transactions which require proper valuation and presentation. Time value of money is also a critical consideration in financial and investment decisions. For example, compound interest calculations are needed to determine future sums of money resulting from an investment. Discounting is used to evaluate the future cash flow associated with capital budgeting projects. This book aims at presenting the time value tools and techniques that are necessary for fair value measurements and for various financial decision making. Furthermore, this book is a comprehensive survey of fair value accounting with a discussion of : (1) ASC 820, Fair Value Measurements and Disclosures, (2) A list of the financial statement items for which fair value reporting is required or allowed. (3) A variety of valuation models, and (4) Fair value disclosure requirements.

Project Management

Dr Jae K. Shim

Project Management: A Financial Perspective is designed to provide you with a deep understanding of the applications and importance of Project Management. You will learn how to assess a project with respect to time, costs, and resources in order to effectively and efficiently reach your goals. You will become familiar with the five processes involved in Project management – Initiating, Planning, Executing, Controlling, and Closing on time and within budget– along with the nine knowledge areas – Project Integration, Project Scope, Project Time, Project Cost, Project Quality, Project Human Resources, Project Communications, Project Risk Management, and Project Procurement – that are essential to being an expert Project Manager. Individuals need hard knowledge and real skills to work successfully in a project environment and to accomplish project objectives. This book is intended to equip its users with both. How? By explaining concepts and techniques and by illustrating through numerous examples how they can be skillfully applied. This book is intended for students as well as for working professionals and volunteers. It is designed to outfit these people with the essential skills needed to make effective contributions and will have an immediate impact on the accomplishment of projects in which they are involved. This book for the most part follows the framework within the Project Management Institute’s Project Management Body of Knowledge (PMBOK). The material, however, places a financial focus on projects as a way to accomplish desired changes in the enterprise in a coordinated and predictable way for favorable outcomes. Topics covered include economic feasibility study, life-cycle costing, target costing, and earned value analysis. Through better project management, you can reduce or eliminate failed projects and reduce the costs associated with successful ones, resulting in increased enterprise effectiveness in providing the maximum value to shareholders.