Back to basics

During the credit crisis, fair value accounting has exposed the risks of holding subprime assets. By definition, fair value considers the most current and complete assessments of the value of economic items. In that respect it is superior to historical cost.

Apart from providing information on the risk associated with fluctuations in value, fair value reporting informs investors about the opportunity cost to managers of holding particular assets. Misleading income stability, based on an exclusive

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: