Business, Management and Accounting
6 years ago

Fair value accounting has little impact on financial statements, study finds.

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Accounting History Review
The lack of impact of fair value accounting: a commentary on ‘“fair value” accounting as the normative Fisherian phase of accounting’
C. Richard Baker

Paper Summary

The article argues that fair value accounting doesn't have much impact on accounting standards or financial statements. Fair value measurements are only used for a few accounts in a few companies, and there hasn't been much interest in using them widely. While some similarities exist between Irving Fisher's work and fair value accounting, the author believes it's just a coincidence.

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