The financial crisis of 2008 drew attention to fair-value accounting (FVA), creating a major policy debate involving the US Congress, the European Commission as well as banking and accounting regulators around the world.
Critical review the literature on fair value accounting.
Explain whether FVA contributed to the recent global crisis.
Discuss whether there is a future for FVA in IFRS.
Reference:
Laux, C. and Leuz, C. (2009). The crisis of fair value accounting: making sense of the recent debate. Accounting, Organisations and Society, 34: 826-834.