Thursday, June 24, 2004

Fair Value and Conservatism

I wonder: now that the trend on the horizon (both IAS and USGAAP) is to move towards fair value in valuating assets and liabilities, how does that influence the traditional balance between management (a bit on the optimistic/entrepreneurial side) versus the accountants (careful, conservative and trust building)?


Blogger Jun Gu said...

Hi,I am a Chinese Accounting Major student, till now, we have not started to use fair valuation on accounting practice in our country, I can only refer to such concepts in reading some foreign books.
There is a wonder that how can we ensure that the fair valuation is really 'fair', you see, it is mainly depended on our mind, rather than on some physical evidence. It seems really a bit too arbitary.
In my opinion, there is still some distance to make this come true to instead the stage of the traditional accounting.

12:22 PM  

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