Wednesday, May 6, 2020

Fair Value Accounting Within Financial Crisis Essay

Abstract Historically ,it is seen that there are numerous number of disputes in the field of financial reporting among different professionals, regulators and theoretitions .most of these disputes are related to the valuation of financial reporting components.the current curve in the progress of valuation is the push for and against the fair value approach.the purpose of this research is to examine the arguments on the use of fair value accounting and to identify the issues related to implementation of fair value accounting standards. Further, the results of literature related to role of fair value accounting within financial crisis are also investigated. Part –a Financial world is at the pace when the accountants are moving their steps towards fair value accounting, moreover FASB and IASB is motivating accountants to increase the use of fair value accounting by establishing new rules. Most of the people concur that fair values are the most reliable measure for financial assets and liabilities that an entity strongly trades, on the other hand some believes if management wants to hold an asset or liability till their maturity then historical method is best for measuring financial assets. Arguments supporting fair value accounting According to the analysts fair value accounting of assets and liabilities is more relevant as the basic economic value of instrument is clearly reflected with the use of FVA and they strongly believe that fair value and relevant volatility reflectsShow MoreRelatedIs Fair Value Accounting Really Fair?1021 Words   |  5 Pages For our project, we wanted to pick the topic, â€Å"Is fair value accounting really fair?† The first part of our presentation was simply explaining what fair value accounting is. 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