Business, Management and Accounting
7 years ago

Fair value accounting: key player in financial crises or lifesaver?

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Accounting and Financial Control
Fair value: history, assessment and financial crisis
Iryna Burdenko

Paper Summary

Fair value accounting has expanded in the past 20 years, aiming to predict market value based on future events related to asset sales or liabilities transfer. It helps determine a fair price for transactions in current market conditions. The debate surrounds whether fair value caused financial crises or helped prevent them. Some argue it led to problems, while others believe it signals financial system issues. The article examines fair value's economic aspects and its role in financial crises.

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