| Abstrakt: |
Many of the authors are presenting the advantages of the fair value, but there are voices which contest this concept, because of its volatility and the tendency of subjectivism, of the manipulation of used models for the evaluation. Among the advantages of the fair value there can be named: utility, relevance, transparency and superior accuracy of the results and cash-flow of the company, it brings more clearance to the financial statements, it does a total accounting of the comparable value and it gives more liability to the manager. The credibility regards a reasonable evaluation, the using of market information in all possible situations for evaluating and justifying the subjective arguments. Starting from these concepts, the users of the accountancy information had demanded the elaborating of a model for a general appliance of the fair value. There are also specialists who criticize the limited use of fair values in IFRS. However, those criticizing fair value accounting do not seem to provide any credible alternatives. Do we go back to historical cost accounting, wherein the financial assets are stated at outdated values and hence are not relevant or reliable? In the current crisis, a question that is raised is: Should assets be marked down to their current throw away prices, as companies may not want to sell them at those values? This paper analyses the answer of this question, and also various controversial issues of the concept of fair value it as it is presented in the current project of the IASB and FASB. [ABSTRACT FROM AUTHOR] |
