XML 25 R10.htm IDEA: XBRL DOCUMENT v3.6.0.2
FAIR MARKET VALUE MEASUREMENTS
12 Months Ended
Dec. 31, 2016
FAIR MARKET VALUE MEASUREMENTS  
FAIR MARKET VALUE MEASUREMENTS

3. FAIR MARKET VALUE MEASUREMENTS

Accounting standards require certain assets and liabilities be reported at fair value in the financial statements and provides a framework for establishing that fair value. The framework for determining fair value is based on a hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:

Level 1:

Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2:

Observable prices that are based on inputs not quoted in active markets, but corroborated by market data.

Level 3:

Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considering counterparty credit risk in its assessment of fair value. The following methods, assumptions, and valuation techniques were used to measure different financial assets and liabilities at fair value and in estimating its fair value disclosures for financial instruments.

Cash and Cash Equivalents:  The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents are deemed to approximate fair value

Investment Securities:  Fair values for investment securities are determined by quoted market prices if available.

Accounts Receivable, Accounts Payable and Accrued Liabilities:  The fair value of trade receivables and payables approximate their carrying amounts due to the short duration before collection or payment.

Based on the foregoing methods and assumptions, the carrying value and fair value of the Company’s financial instruments other than trade receivables and payables are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Carrying

    

 

 

    

 

 

    

 

 

    

 

 

 

 

    

value

    

Fair value

    

Level 1

    

Level 2

    

Level 3

 

As of December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

17,181

 

$

17,181

 

$

17,181

 

$

 —

 

$

 —

 

Investment securities available for sale

 

 

40,760

 

 

40,760

 

 

40,760

 

 

 —

 

 

 —

 

As of December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

31,198

 

$

31,198

 

$

31,198

 

$

 —

 

$

 —

 

Investment securities available for sale

 

 

39,483

 

 

39,483

 

 

39,483

 

 

 —

 

 

 —

 

The Company also has certain non‑financial assets that under certain conditions are subject to measurement at fair value on a non‑recurring basis. No such measurements were required in 2016 or 2015.