Commentary: Financial Reporting and Financial Crises: The Case for Measuring Financial Instruments at Fair Value in the Financial Statements

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CFA Digest
November 2011 | Vol. 41 | No. 4 | 3 pages
Source: CFA Institute
Thomas J. Linsmeier
Natalie Schoon, CFA (Reviewer)

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Abstract

The author offers his views on why he supports the Financial Accounting Standards Board’s proposal that financial instruments be measured at fair value. He cites the failure of current reporting guidelines, lessons from other crises, and the fact that fair value measures reflect the effects of interest rate changes.

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Topics
Financial Statement Analysis
    :
  • Accounting and Auditing Standards Development
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