Essay:
Project instructions:
IFRS (International Financial Accounting Standard) 13 is about the measurement of fair value. It specifies amongst other things the definition and hierarchy to be used in fair value measurements. Laux and Leuz (2009, p833) argue that “the fair value debate is far from over and much remains to be done”.
Required: Based on the above statement, write an essay on the relevance of fair value accounting in the contemporary world. Your essay should include but not limited to a discussion on whether fair value accounting is applicable for a wide range of organisations in financial reporting. Also, explain and analyse whether fair value accounting has had any influence on the subprime and related crises over the world in the recent past.
The expectation is that a minimum of 10 contemporary research articles (out of which at least 6 academic journal articles) are used in the body of the essay.