Comprising contributions from a unique mixture of academics, standard setters and practitioners, and edited by an internationally recognized expert, this book, on a controversial and intensely debated topic, is the only definitive reference source available on the topics of fair value and financial reporting.
Drawing chapters from a diverse range of contributors on different aspects of the subject together into one volume, it:
- examines the use of fair value in international financial reporting standards and the US standard SFAS 157 Fair Value Measurement, setting out the case for and against
- looks at fair value from a number of different theoretical perspectives, including possible future uses, alternative measurement paradigms and how it compares with other valuation models
- explores fair value accounting in practice, including audit, financial instruments, impairments, an investment banking perspective, approaches to fair value in Japan and the USA, and Enron’s use of fair value
An outstanding resource, this volume is an indispensable reference that is deserving of a place on the bookshelves of both libraries and all those working in, studying, or researching the areas of international accounting, financial accounting and reporting.
Table of Contents
Part 1: Introduction 1. Introduction: The Nature of Fair Value 2. The Use of Fair Value in IFRS 3. What SFAS 157 does and does not Accomplish 4. The Case for Fair Value 5. Fair Values: Imaginary Prices and Mystical Markets Part 2: Theoretical Analysis 6. Recent History of Fair Value 7. Fair Value and Valuation Models 8. Whither Fair Value?: The Future of Fair Value 9. Between a Rock and a Hard Place 10. Fair Value and Capital Markets 11. Fair Value: The Right Measurement Basis? 12. Measurement in Accounting and Fair Value 13. CCA: An Unsuccessful Attempt to Change the Measurement Basis 14. Alternatives to Fair Value 15. The Relevance and Reliability of Fair Value Measurement 16. The Fair Value Principle and its Impact on Debt and Equity Part 3: Fair Value in Practice 17. Fair Value: A Cautionary Tale from Enron 18. The Insurance Industry and Fair Value 19. Fair Value Measurement for Corporate Entities, Insurance Companies and Retail Banks from an Investment Banker’s Perspective 20. Fair Value and the Auditor 21. Fair Value Accounting in the USA 22. A Japanese Perspective on Fair Value 23. Pension Accounting and Fair Value 24. Fair Value in IFRS: Issues for Developing Countries and SMEs 25. Fair Value and Financial Instruments 26. Fair Value and IAS 36
Peter Walton Ph.D. FCCA is a researcher and journalist specialised in international accounting. He is a director of the ESSEC-KPMG Financial Reporting Chair at ESSEC Business School and editor of World Accounting Report (published by informa) and Accounting in Europe (published by Taylor & Francis).