Fair value accounting 

The causes of the global financial crisis (GFC) that swept the world in 2008 and 2009 are complex and open to debate. However, some regard the practice of fair valuing assets as a contributing factor to the  rapid spread of the problem. 

REQUIRED:

1. Define fair value accounting and discuss in detail how fair value is determined. Illustrate with examples. 

2. ‘Fair value is market value.’ Make an analysis of this statement. Illustrate with examples. 

Information asymmetry and firm size 

The information content of unexpected profits announcements may be inversely related to firm size; that is, the smaller the firm, the more information is contained in accounting reports. Do  you agree? 

To answer this question, you need to review a minimum of THREE (3) journal articles to  support your claim.

Answer rating: 100% (QA)

Fair value is a term with several meanings in the financial world In investing it refers to an assets sale price agreed upon by a willing buyer and seller assuming both parties are knowledgeable and e... View the full answer