Fair value accounting is one of the topics in accounting that is highly
subjective and can be seen as a positive and negative concept by
different people at the same time, and it can definitely change as the
market and economy change. It is extremely important that financial
information, which is generally presented via financial statements, of
an organization is done is a way that is cohesive and comparable so
that one can get the gist of the financial health and status of a
company. However, when the company is not able to utilize their
own resources, as determined to be appropriate, they must rely on
banks and other entities to determine values in the current economic
atmosphere, which are obviously ever changing. Transparency is
essential when communicating with management, lenders, and
investors and some argue that fair value accounting hinders such
(Fair Value Accounting, n.d.).
Bragg, S. (n.d.). Fair value accounting. Accounting Tools. Retrieved
April 19, 2022, from https://www.accountingtools.com/articles/fair-
value-accounting.html#:~:text=Fair%20value%20accounting%20uses
%20current.
