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Fair Value Reporting in Corporate Accounting: Benefits, Determination Process, and Debate

   

Added on  2023-06-05

8 Pages580 Words78 Views
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CORPORATE ACCOUNTING
Fair Value Reporting in Corporate Accounting: Benefits, Determination Process, and Debate_1

FAIR VALUE
Fair value reposting allows users to take
substantial investment related decisions
Fair value determination is a three-tier process
(McDonough & Shakespeare, 2015)
Using fair value is a benefit as it adds more
utility to the financial information provided in
the financial statements (Leo, 2011)
Fair Value Reporting in Corporate Accounting: Benefits, Determination Process, and Debate_2

Fair value is the price at which a liability could
be settled or an asset that could be exchanged
between the parties (McDonough & Shakespeare,
2015)
Development of a new model
FVA has become a subject of debate ever since the
financial crisis that took place in 2008
Fair Value Reporting in Corporate Accounting: Benefits, Determination Process, and Debate_3

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