The fair value accounting standard will always have its pros and cons
depending on the company (how big or how small) and the nature of
the business. Also, how the market is faired at that specific time.
There are constant changes in the market especially right now with
all prices skyrocketing and once things stabilize, consumers who have
purchased vehicles or property will end up being upside down if we
hit a financial crisis as bad as 2008.
A company should be able to change their books to account for
changes in the market, especially when your company is not
producing like it was in the past. I agree there should be a uniform
method with exceptions to the rule depending on how the market is
fairing at that present time. Production might be great but assets
such as building, and equipment might not be fair value. For example,
Housing prices 6 months ago were great because interests’ rates
were low, but now interest rates are going up and buyers are
hesitant to purchase a house at selling price with interest rates
starting to increase, and the uncertainty of future fair values are
skewed.
