New Security System Ensures Fair Value Accounting Accuracy and Integrity
The security system of fair value accounting ensures that fair value accounting is applied correctly. It consists of three main parts: (1) making sure information is input correctly through corporate governance and internal control, (2) ensuring the quality of information produced through accounting standards and professional judgments, and (3) appraising the information issued through auditing and financial analysis. Internal control is crucial for the security system of fair value accounting.