The recent financial crisis has turned the spotlight on fair-value accounting (FVA) and led to a major policy debate involving among others the US Congress, the European Commission as well as banking and accounting regulators around the world. Critics argue that FVA, often also called mark-to-market accounting (MTM), has significantly contributed to the financial crisis and exacerbated its severity for financial institutions in the US and around the world
PFA the model solution for your perusal. It is a 2300 word + References solution explaining the answer to both questions: 1. The extent to ...
The solution describes the use of fair value accounting as a financial reporting standard and the extent of its relevance to the global financial melt-down in 2007. The work also elaborates on the future of fair value accounting with reference to IFRS.