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Debate Over Fair Value Accounting: Should We Allow Politics To Take An Active Role In Setting Accounting Standards Or Should We Trust That The Sec Knows Best?, Melina Botcheva May 2009

Debate Over Fair Value Accounting: Should We Allow Politics To Take An Active Role In Setting Accounting Standards Or Should We Trust That The Sec Knows Best?, Melina Botcheva

Honors Scholar Theses

In light of the recent economic downfall, there has been significant media coverage on the topic of fair value accounting. There are many critics of the accounting rule, who place blame on it for the destruction of billions of dollars in capital between financial institutions. Other commentators, however, see the rule as necessary and applaud its ability to bring the turmoil in the economy into the spotlight promptly so that it could be addressed effectively. This paper will begin by conducting a study of fair-value accounting from its inception in previous standards and then follow it through to Statement No. …


Fair Value Measurement: What’S New? Teaching Note, Danny A. Pannese, Alan Delfavero Jan 2009

Fair Value Measurement: What’S New? Teaching Note, Danny A. Pannese, Alan Delfavero

WCBT Faculty Publications

As the international economic landscape has become increasingly integrated, the argument for the development of uniform global accounting standards now exists. In an effort to achieve this objective, the Financial Accounting Standards Board, as part of the ongoing Convergence Project with the International Accounting Standards Board, released groundbreaking accounting standards, FAS157 & FAS159, in 2006 and 2007, respectively. Modeled after an international accounting standard, these standards pertain to the use of fair value accounting (FVA), and are the first of their kind as they provide a definition of FVA and an option to expand its use to certain financial instruments. …