Financial reporting quality: is fair value a plus or a minus?

Penman, Stephen H.
December 2007
Accounting & Business Research (Wolters Kluwer UK);2007 Special Issue, p33
Academic Journal
In this article the author examines aspects of fair value accounting of assets and liabilities. He notes that the statement of fair value for some assets and liabilities are required under guidelines established by the International Accounting Standards Board and by the U.S. Financial Accounting Standard Board. The author investigates the circumstances under which fair value accounting can be considered both a positive and a negative element. Also he defines fair value accounting and contrasts it with accounting for historical costs.


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