ABSTRACT
The concept of "fair value" marked a major departure from traditional cost accounting. In theory, under this approach a balance sheet that better reflects the current value of assets and liabilities. Critics of fair value argue that it is less useful over longer time frames and prone to distortion by market inefficiencies resulting in procyclicality in the financial system by exacerbating market swings.
Comprising contributions from a unique mixture of academics, standard setters and practitioners, and edited by internationally recognized experts, this book, on a controversial and intensely debated topic, is a comprehensive reference source which:
- examines the use of fair value in international financial reporting standards and the US standard SFAS 157 Fair Value Measurement, setting out the case for and against
- looks at fair value from a number of different theoretical and practical perspectives, including a critical review of the merits and arguments against the use of fair value accounting
- explores fair value accounting in practice, involvement in the Great Financial Crisis, implications for managerial reporting discretion, compensation and investment
This volume is an indispensable reference that is deserving of a place on the bookshelves of both libraries and all those working in, studying, or researching the areas of international accounting, financial accounting and reporting.
TABLE OF CONTENTS
part |21 pages
Prologue
part I|66 pages
Standards and conceptual issues
chapter 5|16 pages
Shareholder value, financialization and accounting regulation
part II|89 pages
Fair value, risk and financial crisis
part III|49 pages
Development
chapter 11|15 pages
The ‘fairness’ of fair value accounting
chapter 12|14 pages
Let the fox guard the henhouse
part IV|102 pages
Specific topics