The present market and the intent or purpose should be considered
when it comes to fair value accounting for a company. In a previous
article I read by The Lawyer, FRA Partner Rob Mason, and Director
Gordon MacLeod. It talks about the misuse of Fair Value and the
disagreements it can create. They talk about the misuse of fair value
as there is a very fine line between judgement and manipulation.
When there are visible market prices for similar assets, very little
judgement is needed. There are always opportunities for
manipulation and intent fair value when it comes to certain assets.
Information that would be most valuable to management, lenders,
and investors would be their financial reports and if they have most
up to date information regarding the market and fair value
knowledge. The future market is unknown, and companies face many
challenges as they must have full confidence in their decisions.
FAIR VALUE OR FRAUDULENT MISREPRESENTATION?
