XML 24 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2011
FAIR VALUE MEASUREMENTS

12. FAIR VALUE MEASUREMENTS

 

Certain financial assets and liabilities are accounted for at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy prioritizes the inputs used to measure fair value:

 

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

 

Level 2 – Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies.

 

Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value from the perspective of a market participant.

 

The following table represents the fair value hierarchy for those financial assets measured at fair value on a recurring basis as of December 31, 2011 and 2010:

 

2011 Assets   Level I     Level II     Level III     Total  
                         
Investment securities   $ 19,538,000       -       -     $ 19,538,000  
Cash equivalents     803,000       -       -       803,000  
Total   $ 20,341,000     $ -     $ -     $ 20,341,000  
                                 
2010 Assets   Level I     Level II     Level III     Total  
                                 
Investment securities   $ 17,271,000       -       -     $ 17,271,000  
Cash equivalents     4,478,000       -       -       4,478,000  
Total   $ 21,749,000     $ -     $ -     $ 21,749,000