Question: Consider the article "Subprime Crisis and Fair-Value Accounting" (Healy, Palepu, & Serafeim, 2009) from the perspective of an accounting regulator (e.g., the FASB). Next, using outside sources that you may seek and your professional experience, develop and write a 3- to 4-page paper concisely answering the following questions:
- If you were a FASB researcher, what specifically would be the relevant accounting research question with respect to the subprime crisis and fair-value accounting? Propose a research question spanning multiple areas of an organization's financial statements.
- What accounting standards exist that already effect banks involved in the crisis?
- What must be known, estimated, and assumed to answer the research question?
- What would your recommendations be with respect to fair-value accounting standards for banks? Outline the basis of your recommendation.