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HOUSING FOR NEW HOPE, INC.
<br /> NOTES TO THE FINANCIAL STATEMENTS
<br /> AUGUST 31, 2011 AND 2010
<br /> Note 17-Fair Value
<br /> The Organization's assets and liabilities are reported at fair value in the accompanying balance
<br /> sheet.
<br /> Fair Value Measurement Using:
<br /> Quoted
<br /> Prices in Quoted
<br /> Active Prices in
<br /> Market for Active Market Significant
<br /> Identical for Similar Unobserva
<br /> Assets Assets(Level ble Inputs
<br /> Fair Value (Level 1) 2) (Level 3)
<br /> August 31,2011
<br /> Assets:
<br /> Cash $ 87,532 $ 87,532 $ - $ -
<br /> Sales tax receivable 19,898 - 19,898 -
<br /> Grants receivable 320,196 - 320,196 -
<br /> Prepaid Expenses 13,832 - 13,832 -
<br /> Property and equipment, net 3,857,988 - 3,857,988 -
<br /> Liabilities:
<br /> Accounts payable and accrued expenses $ 139,304 $ - $ 139,304 $ -
<br /> Line of credit 169,406 - 169,406 -
<br /> Accrued leave 23,298 - 23,298 -
<br /> Notes payable 1,506,832 - 1,506,832 -
<br /> August 31,2010
<br /> Assets:
<br /> Cash $ 129,104 $ 129,104 $ - $ -
<br /> Sales tax receivable 1,152 - 1,152 -
<br /> Grants receivable 259,457 - 259,457 -
<br /> Prepaid Expenses 10,831 - 10,831 -
<br /> Property and equipment, net 3,509,322 - 3,509,322 -
<br /> Liabilities:
<br /> Accounts payable and accrued expenses $ 74,862 $ - $ 74,862 $ -
<br /> Line of credit 200,000 - 200,000 -
<br /> Accrued leave 24,963 - 24,963 -
<br /> Notes payable 1,359,827 - 1,359,827 -
<br /> The Financial Accounting Standards Board's Codification of Professional Standards establishes a
<br /> fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.
<br /> This hierarchy consists of three broad levels: Level 1 inputs consist of values in active markets for
<br /> identical assets and have the highest priority, Level 2 inputs consist of values in inactive markets
<br /> and Level 3 inputs have values based on unobservable inputs and have the lowest priority.
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