The following information was submitted:
Transactions: WSEAS TRANSACTIONS ON BUSINESS AND ECONOMICS
Transactions ID Number: 89-604
Full Name: Jiri Strouhal
Position: Senior Lecturer
Age: ON
Sex: Male
Address: University of Economics Prague, W. Churchill Square 4, 130 67 Prague 3
Country: CZECH REPUBLIC
Tel: +420224095794
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E-mail address: strouhal@vse.cz
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Title of the Paper: Crisis of fair value measurement? Some defense of the best of all bad measurement bases
Authors as they appear in the Paper: Carmen Bonaci, Dumitru Matis, Jiri Strouhal
Email addresses of all the authors: strouhal@vse.cz
Number of paper pages: 12
Abstract: Many people points towards fair value accounting for financial instruments as being one of the major aggressors of financial crisis. We argue that it is just another case of shooting the messenger, by proving where things really went wrong, and who could be considered responsible within the formed vicious cycle. The results show that fair value accounting is nothing but a "scapegoat", while the ones who are now asking a restriction in the scope of fair value accounting should take more responsibility for their actions. An objective point of view implies making a clearer distinction between accounting and prudential concerns. Fair value cannot be considered guilty for the actual financial crisis, but only a messenger of it, case in which some reactions can be understood, because we all know the general reaction towards the manager. In other words, the concept of fair value has the role to bring us as close as possible to reality, fact that could be realized through !
a correct implementation and a greater transparency, if used properly. Concluding by Churchill words about democracy: "it is the worst system with the exception of all others".
Keywords: Fair value; Financial crisis; Historical costs; Accounting measurement; Value relevance; Prudential concerns
EXTENSION of the file: .pdf
Special (Invited) Session: Fair Value and Crisis: Defense Welcomed
Organizer of the Session: 642-174
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