Some of the empirical researches raise some doubts on fair value reliability. Furthermore, fair value accounting alone cannot provide information useful to evaluate stewardship. Historical cost is also needed. A dual measurement and financial reporting system could therefore deliver more complete and useful information to financial statement users.

Critically evaluate the above empirical findings by specifying positive and negative aspects of Fair Value Accounting.

Answer rating: 100% (QA)

In accounting and in most schools of economic thought fair value is a rational and unbiased estimate of the potential market price of a good service o... View the full answer