NOTE 4: SIGNIFICANT ACCOUNTING POLICIES: Fair Value Measurements (Policies)
|9 Months Ended|
Sep. 30, 2019
|Fair Value Measurements||
Fair Value Measurements
The Company applies the guidance that is codified under ASC 820-10 related to assets and liabilities recognized or disclosed in the financial statements at fair value on a recurring basis. ASC 820-10 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The provisions of ASC 820-10 only apply to the Companys investment securities, which are carried at fair value.
ASC 820-10 clarifies that fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. ASC 820-10 requires valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows:
The Company categorizes a financial instrument in the fair value hierarchy based on the lowest level of input that is significant to its fair value measurement.
The Company recorded a change in FMV of trading securities as unrealized gain of $273,720 and realized gain of $190,460 for the nine months ended September 30, 2019. These securities are classified as trading.
The Company did not have any Level 2 or Level 3 assets or liabilities as of September 30, 2019, except for its convertible notes payable and derivative liability. The carrying amounts of these liabilities at September 30, 2019 approximate their respective fair value based on the Companys incremental borrowing rate.
Cash is as of September 30, 2019 is classified as Level 1 within our fair value hierarchy.
Disclosure of accounting policy for fair value measurements of financial and non-financial assets, liabilities and instruments classified in shareholders' equity. Disclosures include, but are not limited to, how an entity that manages a group of financial assets and liabilities on the basis of its net exposure measures the fair value of those assets and liabilities.
No definition available.