According to William Issac, a financial crisis ensued in 2008
seemingly from controversial accounting rules enforced by the
federal government. The rules in question were the so-called fair
value accounting rules, led by the GASB. The author informs readers
that while fair value seems fair to some, others feel the polar
opposite. This battle of right or wrong pushed the SEC to improve
fair market values. While this was occurring, the GASB made moves
to loosen the framework surrounding fair value regardless of
skepticism from onlookers.
In my opinion, the author Justin Marlowe has been able to portray
that there are two sides to this story, which is something I strongly
believe in. Everyone sees the same situation through a different set
of eyes thus having different takeaways and different opinions of the
matter. I prefer to use cost accounting rather than fair value
accounting though, as I have become accustomed to using it. Perhaps
if I were more accustomed the other I would have opposing views.
But I prefer to stick with what I am comfortable with, which is cost
accounting.
Marlowe, J. (2015, December). Is 'Fair Value' Accounting Actually
Fair? Retrieved from https://www.governing.com/archive/gov-fair-
value-accounting.html
