Financial reporting quality: is fair value a plus or a minus?

摘要: Recent deliberations by both the International Accounting Standards Board (IASB) and Financial Standard (FASB) in United States have focused on how fair values of assets liabilities should be measured. The issue when, rather than how, value measurement applied is still far from resolved, however. Fair been mandated for some under IASB FASB standards, but it to say that principles governing applicability yet articulated: when accounting appropriate not? Or, terms my charge this paper, what circumstances a plus or minus? To prepare task, I made survey public statements against variety standard setters, regulators, analysts, preparers. stated ‘minuses’ typically point dangers estimates marking model market, concerns about introducing ‘excess volatility’ into earnings, feedback effects (on banks’ lending practices, example) could damage business and, indeed, heighten systematic risk. A few antagonists question whether (for bank liabilities, really capture economics (in fostering core deposits making loans). In counterpoint, proponents argue superior economic measure historical cost. Consider following arguments, often advanced as ‘pluses’: