How fair is fair value?

Accounting

It may seem ironic that, in a year when participants in the financial markets are having difficulty determining the fair value of financial instruments, the US Financial Accounting Standards Board (FASB) is requiring companies to adopt a new fair value measurement standard. Some believe the timing of the promulgation of these standards could not have been better. Regardless, these standards are in effect and companies reporting under US GAAP are required to follow the new rules.

Many companies ar