Measurement Issues Fair Value Accounting Accounting Essay

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.


Accounting is also known as the "language of businesses". Learning this language helps in effective communication and understanding of the financial operations of organisations. Being the backbone of any business, accounting allows managers to make informed decisions and keeps investors abreast of developments taking place in the business.

Fair value, also called fair price (in a commonplace conflation of the two distinct concepts), is a concept used in accounting and economics, defined as a rational and unbiased estimate of the potential market price of a good, service, or asset, taking into account such objective factors as:

* acquisition/production/distribution costs, replacement costs, or costs of close substitutes

* actual utility at a given level of development of social productive capability

* supply vs. demand (

Accounting is a measurement system which is plagued by the existence of alternative measurement methods and to date the search for the best measurement alternative still continues.

The IASB Framework defines measurement as follows:

"Measurement is the process of determining the monetary amounts at which the elements of the financial statements are to be recognized and carried in the balance sheet and income statement. This involved the selection of the particular basis of measurement" (paragraph 99).

This research will discuss why accounting standards shifted from historical cost model to fair value model.

The IASB defines fair value as "the amount for which an asset could be exchanged between knowledgeable willing parties in an arm's length transaction. In Fiji, knowledgeable willing parties seeking to exchange a whole range of assets simply does not exist" (Chand & White, 2009).

Moreover, just like other valuation methods, fair value accounting method also has advantages and criticism associated to this valuation approach.

In this research paper Iam also going to look at the role that fair value accounting has played in the recent global financial crisis. Looking at contradicting arguments which hold Fair value accounting responsible for the crisis or classify it as not a major factor which caused the global crisis and its implications in our market.

1.1 Objectives of the study

General Objectives:

The recent review of the Conceptual Framework and changes to the International Accounting Standards reflect the gradual shift from the traditional historical cost accounting towards fair value measurement.

Specific Objectives

1. Identify why accounting standards have shifted to FVA.

2. Identify the advantages and criticisms of FVA.

3. Identify the implication of FVA in Fiji.

1.2 Theoretical Underpinnings

1. Agency Theory

"This theory was developed to explain and predict the actions of agents and principles. According to the agency theory, the principles entrust their resources to managers who act as agents of the resources. Hence it is also known as the „stewardship hypotheses‟. The assumption here is that both the agent and the principal are utility maximizes whose interests are not necessarily aligned. Under this theory the agents are assumed to be driven by self-interest thus are more likely to select those measurement methods that maximize their returns" (Godfrey et al, 2006, p665-667).

"According to this research, the principal-agent conflict is enhanced by historical cost accounting. Historical cost accounting obscures real economic values and generates hidden reserves" (International accounting standards committee, 1994).

Fair value accounting, on the other hand, decreases the principal agent conflict by requiring full disclosures and transparency in reporting.

2. The Positive Accounting Theory (PAT)

"This theory was principally developed by Watts and Zimmerman and seeks to predict and explain why managers (and/or accountants) elect to adopt particular accounting methods in preference to others" (Deegan, 2006, p10).

There are two versions of PAT namely the opportunistic version and the efficient contracting version. Under the opportunistic version managers choose accounting policies for their own benefit. Under the efficient contracting version managers choose accounting policies to accomplish corporate governance objectives of the firm. Pat centers around three hypotheses:

(i). The bonus plan hypothesis

(ii). The debt/equity hypothesis

(iii). The political cost hypothesis

(i) Bonus plan hypothesis

"This hypothesis predicts that if a manager is rewarded in terms of a measure of performance such as accounting profit, that manager will attempt to increase profits to the extent that this leads to an increase in increase in his or her bonus" (Deegan, 2006, p213).

In the case of rising asset values, fair value will be taken up whereas historical cost will be opted for when depreciation is less than the fall in asset fair values.

(ii) Debt/Equity Hypothesis

Under this hypothesis, the larger a firms debt/equity ratio, the more likely that the manager will use accounting policies to shift future earnings to the current period (higher net earnings will reduce the probability of technical default on the debts) to avoid violation of their debt contracts.

In the case of rising asset values will be taken up whereas historical cost will be opted for when depreciation is less than the fall in asset fair values.

(iii) Political cost hypothesis

"According to this hypothesis, managers have greater incentives to reduce reported profits and hence reduce their perceived ability to bear political costs" (Godfrey et al, 2006, p670).

The larger the firm, the more likely it is that the manager will adopt accounting methods and procedures that are inexpensive and that defer reported earnings from current to future periods.

If fair value recognizes a greater reduction on the book value of an asset, in relation to what the current depreciation rate will show, the managers will opt for the fair value accounting. If the assets are rising in value then, the managers will opt for historical cost because this will continue to write down the asset's value hence reducing the profit.

3. Continuously Contemporary Accounting

"This theory was developed by Raymond Chambers which prescribes that all assets should be measured at net market value and that such information is more useful for informed decision making rather than information based on historical costs, which according to Chambers may actually be misleading" (Deegan, 2006, p217).

Chambers prescribed that all assets should be recorded at their current cash equivalents (amount expected to be paid by selling the asset).

According to his approach, if an asset does not have a current market value then it is to be excluded from the financial statements regardless of the value in use.

4. Stakeholder Theory

Stakeholder theory is based on satisfying the needs and demands of the various stakeholders (namely owners, employees, customers and so on) since they are vital to a firm's survival.

"With regards to historical cost accounting it provides management with abundant opportunities to manipulate reported accounting figures. In contrast, a fair value system is characterized by more disclosure and better transparency and better transparency contributes power to stakeholders" (Barlev & Haddad, 2003, p333).

The type of information a stakeholder receives depends on the how powerful and influential the stakeholder is.


There are several other theoretical underpinnings that are relevant to explain the basis of this seminar presentation such as accounting as a Historical Record theory, Accounting as communication-decision information theory, Decision- Usefulness theory of Accounting, Investor theory, Legitimacy theory and others.


2.1 The Shift from Historical Cost Accounting to FVA

"Standard setters in the past mostly emphasized on historical cost accounting. Under this traditional accounting model, the income statement, which results from matching an entity's revenues with expenses during a period of time, was considered the primary financial statement conveying useful information about a company's performance and value to shareholders. The balance sheet was considered a by-product of the matching process, since it contained such categories as prepaid expenses, unearned revenues, accrued expenses, and accrued revenues. Financial statements prepared under the historical cost convention were and are still perceived by many today to be reliable, relatively easy to verify, and straightforward to understand" (Cassabona P et al, 2007, p1).

"Historical cost accounting performed well as long as a company's assets consisted mostly of identifiable tangible assets. With the increased prominence of intangible assets, such as intellectual capital, human resources, brand names, technology advances, or corporate culture, this accounting model resulted in under-valuing and under-recording assets that contributed significantly to the achievement of a company's strategic goals and objectives. For example, intangible assets that are recorded in the balance sheet--purchased copyrights, patents, and other legal rights are recorded at historical cost. Other intangible assets, such as brand assets, assets arising from marketing and supplier relationships, and knowledge assets developed from research and development are not recorded at all. Consequently, great disparities between companies' book and market values have been observed, and the users of financial statements have pressed for more relevant fair-value information" (Cassabona P et al, 2007, p1).

"For the past decade, to improve the decision-making relevance of financial statements, the Financial Accounting Standards Board (FASB) has been adding more fair value recognition, measurement, and disclosure standards to the generally accepted accounting principles. The International Accounting Standards Board (IASB) follows a similar approach. As a result, a mixed accounting model has been developed, which is still primarily based on historical cost but with an ever increasing application of fair value accounting. Consequently, a shift has occurred in recent years towards using the balance sheet as the primary financial statement conveying information to shareholders, and the income statement reporting economic income as simply the change in value over a period of time" (Cassabona P et al, 2007, p1).

2.2 Fair Value Accounting

2.2.1 Merits of FVA

Some of the key reasons why fair value accounting benefits investors include:

• It requires or permits companies to report amounts that are more accurate, timely, and comparable than the amounts that would be reported under existing alternative accounting approaches, even during extreme market conditions

• It requires or permits companies to report amounts that are updated on a regular and on-going basis

• It limits companies' ability to manipulate their net income because gains and losses on assets and liabilities are reported in the period they occur, not when they are realized as the result of a transaction

• Gains and losses resulting from changes in fair value estimates indicate economic events that companies and investors may find worthy of additional disclosures

2.2.2 Criticisms of FVA

In response to the credit crunch, some parties (generally financial institutions) have criticized fair value accounting, including FAS 157's measurement guidance. Those criticisms have included:

• Reported losses are misleading because they are temporary and will reverse as markets return to normal

• Fair values are difficult to estimate and thus are unreliable

• Reported losses have adversely affected market prices yielding further losses and increasing the overall risk of the financial system

• Likely increase in the volatility of income

•Problems faced by banks in maturity and liquidity transformation of assets

•Hinders bank's role as institutions smoothing intertemporal shocks

•Potential disruption to market discipline caused by the reduction of comparability and reliability of financial statements across financial institutions

•Limited reliability of present bank estimates of probabilities of default (PDs) for accounting purposes (Enria et al, 2004)

2.3 Implication of FVA in Fiji.

"The adoption of fair value accounting has raised a degree of concern by the FIA members regarding its impracticalities and its incompatibility with the local economy. The local accounting professional body (FIA) agreed in principle on extensive adoption of IFRSs for reporting periods beginning on or after 1 January 2007" (Wong, 2004, p. 7).This prompted the implementation of fair value accounting as prominence shifted to convergence of accounting practices on an international scale.

"The costs associated with the adoption of FVA in Fiji are substantial. The IASB defines fair value as the amount for which an asset could be exchanged between knowledgeable willing parties in an arm's length transaction". In Fiji, knowledgeable willing parties seeking to exchange a whole range of assets simply does not exist" (Chand & White, 2009). "This incompatibility is also applicable to Fiji's reserves and fixed investments. Due to Fiji's thin capital markets the adoption of fair value accounting will lead to the radical rewriting of balance sheets of entities operating, especially in the financial sector. This leads to needless and unadorned economic costs" (Chand & White, 2005).

A local example reiterates the argument above:

"FNPF (Fiji National Provident Fund), which is our (Fiji) compulsory superannuation/pension scheme is required by law to hold a minimum of 50% of its investment portfolio in government securities which are marketable and reported on a held to maturity basis valued in excess of $US 1.15b (Fiji National Provident Fund, 2004). By adopting IAS 26, Accounting and reporting by Defined Benefits Plans, FNPF will be obliged to write down the value of these investments considerably. To comply with the legal requirement mentioned above i.e. maintain a 50% fund level of its portfolio in government securities, FNPF would be bound to sell of other securities. Moreover sales would have to be made at reduced prices, which would impair the firm's capacity to make pension payments" (Chand & White, 2006 pg12).

Moreover, the requirement of IAS16, Property, Plant and Equipment (2004) for firms to revalue property, plant and equipment would in itself have substantive costs. These costs arise in the form of hiring valuers for determining the fair value of the respective property, plant and equipment. "To aggravate matters, together with the extremely high costs of the valuation, Fiji lacks a market for the availability of independent valuers. The local body responsible for the valuation of assets; Fiji Institute of Valuers, has roughly 70 members which does not have the capability to carry out informed independent valuations required by IAS 16" (Chand & White, 2006, pg13).

Furthermore, since there is no perfect market that could be used to determine fair value, the valuation process would be subject to a high degree of idiosyncratic estimates which can be used for the manipulation of financial reports (if independent valuers are not used).


The naturalistic approach to research was used to compile this research paper. The following methods were used:

1. Interviews and Questionnaires

Questionnaires and interviews were used to gather information from corporate and experienced personal from various organizations. Some of the companies which were interviewed are as follows:

Mr. Deepak Raj (Accountant) - Fiji Sugar Corporation Limited

Mr. Ashveen Nandan (Senior Software Consultant) - Datec Fiji Limited

Mr. Zirus Zuber (Audit Manager) - KPMG

Ms. Maureen Prasad (Internal Auditor) - Punja & Sons Company Limited

Mr. Karim (Auditor) - Price Waterhouse Coopers

Ms. Tanya Work (Customer Services Manager) - Westpac Banking Corporation

Advantages of conducting interviews and distributing questionnaires to gather information

Large amounts of information can be collected from a large number of people in a short period of time and in a relatively cost effective way

The results of the questionnaires can usually be quickly and easily quantified by either a researcher or through the use of a software package

The responses are gathered in a standardized way, so questionnaires are more objective, certainly more so than interviews.

Generally it is relatively quick to collect information using a questionnaire.

The results of the questionnaires can usually be quickly and easily quantified by either a researcher or through the use of a software package

Disadvantages of conducting interviews and distributing questionnaires to gather information

There is no way to tell how truthful a respondent is being

There is a level of researcher imposition, meaning that when developing the questionnaire, the researcher is making their own decisions and assumptions as to what is and is not important, therefore they may be missing something that is of importance

2. Internet Research

The internet was used to find the implications of fair value accounting on Fiji Firms and its impact in the Pacific. Website browsed includes:

Emerald (cited in the bibliography)

Cai-xia, H. & Chi, Z. (2010), "Fair value accounting under financial crisis", Journal of Modern Accounting and Auditing, vol. 6, no. 6, pp. 61-62.

Entrepreneur (cited in the bibliography)

[Accessed: April 18, 2012].

Harvard Business Review (cited in the bibliography)

Viñals, J. (2008), "Improving fair value accounting", Financial Stability Review, vol. 12, no. pp. 6-10.

Wikipedia (cited in the bibliography)

Advantages of using internet research to gather information

The biggest advantage of doing research online is the immediate accessibility of the information

Online research also gives the researcher the advantage of being able to follow a hunch and look up information on the fly. The information can later be verified when researched in greater depth.

Disadvantages of using internet research to gather information

Although researchers can locate some academic articles online for free, typically, there is a cost to access databases and journal articles.

3. Library Research - Books

The books cited in the bibliography were also used to gather information which is available in the USP library:

Advantages of using library research (books) to gather information

Libraries offer expert assistant to researchers. If you are having difficulty locating what you need for you research, an effective librarian can help you find it.

With books it is often easier to identify the author and assess their credentials.

Disadvantages of using library research (books) to gather information

Library research can be time consuming compared to quick download of relevant articles online.

5. Case Study

A case study was conducted on a local organisation (Sugar Research Institute of Fiji) and will be looked at the impact of fair value on it operations and the financial implications that it posed.

Archival data such as past financial reports, journals and articles of the organisation were also reviewed.

Advantages of conducting case study to gather information

Use of case study develops analytic and problem solving skills

Allows for exploration of solutions for complex issues

Allows students to apply ne knowledge and skills

Disadvantages of conducting case study to gather information

Insufficient information can lead to inappropriate results


4.1 Analysis

4.1.1 Methods used for valuation

Out of the 12 questionnaires that were submitted, full responses were made to 10. Of this 10 the following table shows a breakdown of the valuation method used for each balance sheet item.

Fair Value

Cost Model

Revaluation Model

Equity Investment


Property, Plant and Equipment

10% (1)



Agriculture/ Livestock


Most entities use fair valuation method for equity investment because it is the most appropriate method of valuation. Property, plant and equipment is mostly valued at historical cost in Fiji as according to the data collected, 60% of the entities randomly selected in Fiji use historical cost model. This is mainly because there is no active market here in Fiji and also adoption of fair value model is very expensive for these entities. Moreover, for agriculture/livestock valuation as per IAS 41, fair value is the most appropriate method of valuation, that is why the two entities which deal with livestock (Rooster poultry & Ram Sami and sons) are using fair valuation method.

4.1.2 Benefits of Fair Value vs. Cost

Benefits Outweigh Cost

Cost Outweigh Benefits

20% (2)

80% (8)

Most responses were that cost out way benefit because Fiji does not have an active market for most of the asset and transaction cost are usually high. Other costs also need to be considered such as hiring of consultants.

4.1.3 Investment Write-offs

The two respondents that use fair value confirmed that the use of fair value led to extensive write offs of asset in their Company.

FSC had to write off 2.4million in 2009. These firms; FNPF and FSC have recently written off substantial amount of investment mainly because of permanent decreases in the value of the investments.

4.1.4 Summary of Other Queries

From the responses given the following benefits to fair value can be ascertained:

It takes into account inflation

It enhances functions of stewardships

It provide present figures for future reference as accounting information needs to be reflected for future, not past

It is consistent with other financial instruments

Current and prospect investors and creditors are the relevant users for general purpose financial statements and it present current information for decision making to such parties

It provides complete disclosures

It is useful for economic decision making

It is reliable and transparent

The costs to fair value are:

Fluctuations in earnings

Difficult to measure due to estimates

Costly time and resources to implement and maintain

There is uncertainty on estimates

4.2 Case Study

I carried out a case study of the Sugar Research Institute of Fiji (SRIF) and looked at the impact that the adoption of fair value accounting posed to the institute. Due to convenience and the readily accessible data on SRIF in journals, articles, financial reports and publications I limited my scope of methodology to archival data.

The Sugar Research Institute of Fiji has extensive levels of investments in property, plant and equipment in relation to its operating income. In 2010, SRIF's persistent income was approximately $10m (SRIF, 2010). Expecting the need to revalue using fair value accounting as per requirement of IAS 16, SRIF obtained quotes from independent valuers to determine the value of its assets using the fair value model.

After obtaining these quotes, SRIF expected the initial cost of adopting the fair value model to be around $1.3m. This was about 13% of its total recurring income. Meeting the cost of adopting the fair model required diversion of funds from other essential departments such as ACP Funding.

The diversion of funds would have been a questionable issue from the board members and would have resulted in a general reduction in the qualitative level of services provided by the SRIF. SRIF also had difficulties obtaining the appropriate expertise required for the valuation process as there isn't an active market for valuation work. Moreover, "The Fiji Institute of Valuers (at that point in time) had about 70 members which were presumed to lack the capacity to carry out the independent valuations" (Chand & White, 2006, pg. 13)


5.1 Identify why accounting standards have shifted to FVA.

Comparing the findings and analysis with the literature review, it can be said that they are in line. Some of the major reasons stipulated for the shift towards fair value accounting were due to the need for more relevant valuation of intangible assets such as intellectual capital, human resources and brand names which are gaining significance in the accounting profession. Moreover, another reason was that fair value accounting improves decision making as it ensures more relevant information. Furthermore, due to IFRS balance sheet is now considered a more important element for investors as they are more concerned about the financial position of the business in a certain point in time.

5.2 Identify the advantages and criticisms of FVA.

Comparing the findings and analysis with the literature review, we can say that they are in line. Some of the common reasons as to why fair valuation method of accounting was advantageous were that it provides information which is more accurate, timely and comparable. It reports updated amount on regular and on-going basis. It is useful in decision making and is transparent in nature. Moreover, in the literature review, another advantageous point was that it also restricts company's ability to manipulate data as in fair valuation model, gains and losses of assets and liabilities are reported as they occur and not when they are realized in future.

Moreover, most of the common reasons for the disadvantages of fair value model were that it is difficult to measure due to volatile market and fluctuations in earnings. Also it is very costly to implement and maintain by an entity as they would need to pay high amounts to hire consultants and train staff so they can adopt this valuation method in Fiji. Furthermore, as discussed in the literature review, some other criticism of fair value accounting is that information reported is misleading as is temporary and will reverse when the market turns to normal. Also since there are high active markets there in developed countries, market transactions are volatile and vulnerable to economic conditions, thus it is unreliable.

5.3 Identify the implication of FVA in Fiji.

Relating the finding from the analysis with the research it can be assumed that the implications of using fair value are similar to those mentioned in the literature review. In the case study it was discovered that Sugar Research Institute of Fiji (SRIF) suffered huge costs in order to adopt the fair value model which was consistent with the findings from an article "A critique of the influence of globalization and convergence of accounting standards in Fiji, " (Chand & White, 2006). Moreover, firms were unable to comply with IFRS standards since there is no active capital market in the domestic sector. Valuers have had to use their subjective approximations based on their skills and expertise.


Research comes with great effort and time. Mentioned below are the difficulties I encountered while compiling this research paper:

Geographical constraints limited our research to certain commercial area and not Fiji as a whole which led to a small sample size and high vulnerability to errors.

The information gathered was too broad to make appropriation conclusions.

Difficulties were also faced when some of the questionnaires distributed to the accountants were not returned. If almost all had returned, our analysis and findings could have further been enhanced.

Due to confidentiality issued, firms were hesitant to disclose information

Library research was confined to availability of limited number of books, journals and articles of which most were out-dated, thus we had to mainly rely on internet research.


7.1 Conclusion

The primary objective of this research was to evaluate the motive behind the shift from historical cost to fair value accounting using Sugar Research Institute of Fiji (SRIF) as a local example to show the implication of using fair value in the South Pacific.

The firms shifted from historical cost model to fair value model due to dissatisfaction with historical cost in terms of its incapability in providing current value of assets, failure to consider inflation, and inability to provide relevant information for investors. When they adopted fair value model it enabled them to take into account all those factors of valuation which limited the firms in historical cost model. Moreover, fair value model enhances the function of stewardship, it provides complete disclosures which are in compliance with the current IFRS and the financial information is now more relevant and enhances economic decision making.

Although fair value model is more preferred than other valuation model, it also has some criticism such as fair values are difficult to estimate and thus is unreliable and likely increase in the volatility of income. Moreover, there might be potential disruption to markets due to reduction in comparability and reliability brought about by fair value model. Lastly, fair value model is seen as a costly exercise in terms of both time and resource needed to implement and maintain the model in South Pacific.

There has been a component of the profession who argued that fair value model was responsible for the Global Financial Crisis in terms of leading to huge write-off/downs in investments which created a fire sale situation of assets causing entire market valuation to fall and created a vicious cycle. However, there isn't any serious evidence to support the claim that fair value was the sole cause of the financial crisis. Others have argued that fair value was just a messenger who made the inevitable occur faster because accounting books did not match the economic reality brought about by the use of historical cost while fair value established a link with market situations and what was portrayed in the accounting books.

The adoption of FVA in Fiji was generally met by criticism by the local accounting profession and its users. FVA demanded huge implementation cost which were in the form of consultancy and valuation cost. Moreover, matters were aggravated by a lack of active market for valuation. Furthermore, there is no active capital market which prompted subjective estimation which was prone to manipulation.

7.2 Recommendations

Some of the recommendations that I have come up with to assist in the adoption and uses of fair value accounting (FVA) are:

Evaluate firm's structure and look at historical data to determine the value of assets when relevant markets do not exist.

Principles and standards of FVA should be re-examined in the perspective of developing realistic and compatible guidelines for dealing with less active capital markets.

Flexibility of accounting standards should be enhanced to allow for the prudent need for institutions to maintain sufficient capital loss reserves as a provision for expected losses resulting from the adoption of the fair value model. As in the case study, SRIF suffered vast expenses in the adoption of the FVA model which was deemed questionable by shareholders and other interest parties. If Accounting standards had allowed for the maintained of sufficient capital loss reserves, the adoption costs would have not caused the level of commotion that it did.

Allow for an adequate level of development of the valuation market necessary to meet up the changing valuation needs commanded by the changing standards.


Barlev, B. & Haddad, J.R. (2003), "FAIR VALUE ACCOUNTING AND THE MANAGEMENT OF THE FIRM ", Critical Perspectives on Accounting, vol. 14, no. 4, pp. 333.

Bonaci, C.G. & Strouhal, J. (2009), "Fair Value and Crisis: Defense Welcomed", RECENT ADVANCES in MANAGEMENT, MARKETING, FINANCES, pp. 71.

Cai-xia, H. & Chi, Z. (2010), "Fair value accounting under financial crisis", Journal of Modern Accounting and Auditing, vol. 6, no. 6, pp. 61-62.

Cassabona, P.A. & Gornik-tomaszewksi, S. (2008), Special Issue: fair value in financial reporting, auditing and ta accounting. Entrepreneur. Available from: [Accessed: April 18, 2012].

Chand, P. & White, M. (2006), "A critique of the influence of globalization and convergence of accounting standards in Fiji", Critical Perspectives on Accounting, pp. 12-14.

Chand, P. & White, M. (2009), "Embracing International Financial Reporting Standards (IFRSs) and SME IFRSs: Implications for Emerging Economies", pp. 18-25.

Deegan, C. (2006), Financial Accounting Theory, 2nd ed, McGraw-Hill Irwin, NSW.

Enria, A., Cappiello, L. & Dierick, F. (2004), "FAIR VALUE ACCOUNTING AND FINANCIAL STABILITY", OCCASIONAL PAPER SERIES, vol. 13, no. pp. 8-13.

Godfrey, J., Hodgson, A., Holmes, S. & Tarca, A. (2006), Accounting Theory, 6th ed, John Wiley & Sons Australia, NSW.

International Accounting Standards Committee, International Accounting Standards IAS 1 (Reformatted): Disclosure of Accounting Policies 91994).

Laux, C. & Leuz, C. (2009), "Did Fair-Value Accounting Contribute to the Financial Crisis?", Journal of Economic Perspectives 20, pp. 30-31.

Ryan, S.G. (2008), "Fair Value Accounting: Understanding the Issues Raised by the Credit Crunch", Council of Institutional Investors, pp. 4-5.

Viñals, J. (2008), "Improving fair value accounting", Financial Stability Review, vol. 12, no. pp. 6-10.

Yuan-Yuan, Z. & Jun, D. (2009), "The defects of fair value under global financial crisis", Journal of Modern Accounting and Auditing, vol. 5, no. 7, pp. 53-54.