Chapter 39

Fair Value and Accounting

P. Walton

ESSEC Business School, Paris, France

Outline

Introduction

The Purpose of the Balance Sheet

Fair Value Measurement Standards

Fair Value and Historical Cost Accounting

Assets That Generate Cash Directly

Fair Value and Cash Generation

Specific Assets

Fair value and financial instruments

Investment property

Pension plan assets

Other Assets at Fair Value

Biological assets

Property, plant and equipment

Inventory

Fair Value and the Financial Crisis

Calm Before the Storm

Shooting the Messenger

The Standard-Setter Responds

Fair Value and Financial Instruments After the Crisis

A New International Standard

Rejigging the US Requirements

Full Fair Value Financial Statements

Conclusion

Glossary

Further Reading ...

Get Handbook of Key Global Financial Markets, Institutions, and Infrastructure now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial