Activity: Based on material presented in this article and in the chapter, compare and contrast views about the fair value measurement model. Full fair value would require all financial instruments to be measured at balance date at fair value. Bankers consider that this would lead to negative consequences. They state that it will lead to volatility (an understatement and overstatement of net assets) and unrealised (paper') losses. In addition, opponents claim fair value measurement is misleading and does not provide a faithful representation of an entity's business model and how it generates earnings. For example, a loan at amortised cost shows the expected cash flows, which are contractual and can be measured reliably. A fair value calculation based on periodic marking to market of the loan can provide less predictive value because expected future cash flows are not represented . Bankers express a preference for a mixed attribute measurement model, where held-for- trading financial instruments are measured at