Pregledni rad
THE IMPACT OF FAIR VALUE ACCOUNTING ON THE CRISIS IN BANKING SECTOR OF EU AND USA
Šaban Gračanin
Edin Kalač
Sažetak
Authors who criticize fair value accounting (FVA) claim that the use of fair value accounting as
a measurement attribute had essential impact on the origin, spreading and strengthening of
actual global financial crisis. Similar outlook towards the possible impact of fair value
accounting on the stability of global financial system and real economy was previously
expressed by the European Central Bank (ECB), in its notes and assumptions. In the light of
above mentioned criticism, of great number of researches and ongoing debates over the FVA
issue, in the center of the world accounting and financial community currently are requirements
for a deep reform and even withdrawal of FVA standards. In this work we analyze the
correctness of such statements and the impact of fair value accounting on the EU and USA banks
financial results before and during the crisis. We will try to answer the questions - Whether the
use of fair value accounting contributed to originating and strengthening of the current financial
crisis? Would the market have reacted differently if the banks hadn’t shown financial losses
during 2008? Should regulatory institutions still insist upon the use of fair value?
The analysis is based on the secondary data. Sources of secondary data for this topic are
surveys, organizational records and data collected through qualitative research in literature.
Ključne riječi
Fair value accounting; financial crisis; banks in EU and USA; FVA reform
Hrčak ID:
70518
URI
Datum izdavanja:
1.6.2011.
Posjeta: 3.033 *