OIIM » Topics » Fair Value Measurements

This excerpt taken from the OIIM 20-F filed May 12, 2009.

Fair Value Measurements

We adopted SFAS No. 157, “Fair Value Measurements” on January 1, 2008. SFAS No. 157, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. SFAS No. 157 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, SFAS No. 157 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

 

  Level 1 –   Observable inputs such as quoted prices for identical instruments in active markets;

 

  Level 2 –   Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;

 

  Level 3 –   Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
This excerpt taken from the OIIM 6-K filed May 8, 2009.

Fair Value Measurements

We adopted SFAS No. 157, “Fair Value Measurements” on January 1, 2008. SFAS No. 157, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. SFAS No. 157 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, SFAS No. 157 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

 

Level 1    —    Observable inputs such as quoted prices for identical instruments in active markets;
Level 2    —    Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;
Level 3    —    Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

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EXCERPTS ON THIS PAGE:

20-F
May 12, 2009
6-K
May 8, 2009
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