Fair value accounting in Serbia may fuel financial crises and speculative bubbles.
Fair value accounting is used to show assets, debts, and capital at current market prices. It helps investors by giving a clear picture of a company's financial health. When markets are stable, fair value works well. But in unstable markets, it can be tricky to estimate values accurately. During financial crises, fair value accounting can make things worse by causing prices to go up and down quickly. This can lead to risky investments and make crises worse.