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11 <br /> THE BOTANICAL GARDEN FOUNDATION, INC. <br /> NOTES TO FINANCIAL STATEMENTS <br /> Page 5 of 13 <br /> INVESTMENTS (CONTINUED) <br /> The Foundation's total investments at June 30, 2011 and 2010, are as follows: <br /> 2011 2010 <br /> Fair market value $ 2,112,862 $ 1,946,240 <br /> Cost 1,168,734 1,200,273 <br /> Accumulated appreciation $ 944,128 $ 745,967 <br /> FAIR VALUE OF ASSETS <br /> The Financial Accounting Standards Board Accounting Standards Codification 820 — Fair <br /> Value Measurements and Disclosures ("FASB ASC 820") defines fair value as the amount <br /> that would be received to sell the investment in an orderly transaction between market <br /> participants at the measurement date(i.e. the exit price). <br /> FASB ASC 820 establishes a fair value hierarchy for inputs used in measuring fair value that <br /> maximizes the use of observable inputs and minimizes the use of unobservable inputs by <br /> requiring that the most observable inputs be used when available. Observable inputs are those <br /> that market participants would use in pricing the asset or liability based on market data <br /> obtained from sources independent of the Foundation. Unobservable inputs reflect the <br /> Foundation's assumptions about the inputs market participants would use in pricing the asset <br /> or liability developed based on the best information available in the circumstances. The fair <br /> value hierarchy is categorized into three levels based on the inputs as follows <br /> Level 1 — Valuations based on unadjusted quoted prices in active markets for identical <br /> assets as of the reporting date. <br /> Level 2 - Valuations based on inputs other than quoted prices in active markets, which <br /> are either directly or indirectly observable as of the reporting date, are valued at prices for <br /> similar assets or liabilities in markets that are not active, or determined through the use of <br /> models or other valuation methodologies. <br />