Some Aspects Regarding the Role of Fair Value Accounting During the Current Financial Crisis
9 Pages Posted: 1 Apr 2009 Last revised: 6 May 2009
Date Written: March 31, 2009
The financial crisis that hit the American economy to its heart in September 2008, rapidly spreading all around the world, has generated strong debates on the use of exotic derivatives financial instruments and of fair value accounting. These themes that made front-page news all over again raised divergent opinions among bankers, insurance executives, auditors or politicians more or less affected by the crisis. This paper aims at reviewing the situation of financial markets, identifying the role and importance of fair value accounting and derivatives within these huge scandals, presenting both for and against fair value and credit derivatives opinions and giving some anti-crisis solutions for the future.
Keywords: fair value accounting, financial crisis, derivatives
JEL Classification: M41
Suggested Citation: Suggested Citation