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    Agree/disagree that FAS 157 responsible for financial meltdown

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    Do you agree or disagree that FAS 157 was responsible for the financial meltdown in the U.S. Will the recent revision of FAS 157 help?

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    Effect of the revised FAS 157
    According to the US GAAP (FAS 157), fair value is the amount that a willing party can receive to buy or sell an asset putting factors such as costs of production, distribution , utility, characteristics of risks it bear etc.
    The FAS 157 did play a major role in the financial crises that is US facing although it is not the only factor that has caused these financial crises. This is because the market to market accounting has contributed the excessive borrowing of capital so as to increase a firm's investment potential in the boom economic session and ...

    Solution Summary

    The expert gives there opinion on whether they agree or disagree that FAS 157 is responsible for financial meltdown.