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

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

      Time Value of Money and Fair Value Accounting

      Concepts and Tools

      Dr Jae K Shim MBA, PHD

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

      © Jae K Shim 2012

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      Global Professional Publishing

      Random Acres

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      Kent TN18 5AD

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

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      ISBN 978-1-906403-76-8

      Printed in the United Kingdom by Berforts

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      Contents

Preface

About the Author

Chapter 1 Time value of money and its applications

       Accounting Applications

       Fair Value Measurements

       The Fair Value Hierarchy

       Risk and Restrictions

       The Difference between the Principal Market and the Most Advantageous Market

       Valuation Approaches

       The Three Levels of Fair Value Hierarchy

       Financial Applications

       Time Value Fundamentals

       How Do You Calculate Future Values? – How Money Grows

       Simple Interest

       Compound Interest

       Intrayear Compounding

       The Power of Compounding

       Future Value of an Annuity

       Ordinary Annuity

       Annuity Due

       Future-Value Difference between Ordinary Annuity and Annuity Due

       Can a Computer Help?

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

       An Application

       Present Value of Mixed Streams of Cash Flows

       Present Value of an Annuity

       Ordinary Annuity (OD)

       Annuity Due (AD)

       Present-Value Difference between Ordinary Annuity and Annuity Due

       Can a Computer Help?

       Perpetuities

       Deferred Annuities

       Future Value of a Deferred Annuity

       Present Value of a Deferred Annuity