2021-207A - Laserfiche WebLink

Home Browse Search

FERREIRA CONSTRUCTION COMPANY INC., AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS • quoted prices for similar assets or liabilities in active markets; • quoted prices for identical or similar assets or liabilities in inactive markets; • inputs other than quoted prices that are observable for the asset or liability; • inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value. There have been no changes in the methodologies used at December 31, 2020. • Investment at cost: Fair value obtained through a discounted cash flow analysis. The preceding methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although management believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table sets forth by level, within the fair value hierarchy, the Company's assets and liabilities at fair value as of December 31, 2020: Fair Value Measurements- Non- Recurring: The following non-recurring fair value measurements were done for the investment at cost of Ferreira Construction Company, Inc. due to a $1,000,000 impairment loss during the year ended December 31, 2020, due a change in the expected cash flows from the investment. The Company used a discounted cash flow analysis approach to approximate fair value and utilized a present value rate of 3.25% which is equal to the prime rate at December 31, 2020: Leven Level Level Total Investment at cost, which approximates fair value $ - $ - $ 2,351,171 $ 2,351,171 Note 4 - Investments at Cost and Equity Method: Investments, carried at cost, consist of the following: Preferred stock 12 $ 2,351,171 $ 2,351,171