Final answer:
The statement that Fair Value Adjustments are found in Stockholder's Equity is false.
Step-by-step explanation:
Fair Value Adjustments refer to the changes in the fair value of assets or liabilities that a company might hold, such as investment securities. These adjustments are commonly found on the balance sheet as part of the assets or liabilities, depending on what is being adjusted. For example, if available-for-sale securities have increased in value, the fair value adjustment would be recorded as a separate component of other comprehensive income, which is a section of equity but is not directly part of stockholders' equity.
Stockholders' equity represents the owners' claim to the assets of the company after all liabilities have been subtracted. It typically includes common stock, retained earnings, and additional paid-in capital. While changes in the fair value of certain assets and liabilities do affect the overall value of the equity, they are not grouped under the account titled 'Fair Value Adjustments' within stockholders' equity.