Authors : Miroslav Skoda and Juraj Gabrhel
Abstract: Fair value accounting is an essential feature of International Financial Reporting Standards. Even though, this accounting method did not spark the financial crisis, it did enhance its impact. As a consequence of the financial crisis the IASB amended IAS 39 to override the fair value recognition. The amendments to IAS 39 & IFRS 7 permitted reclassifications of the categories held for trading and available for sale, some of which had explicitly been forbidden prior to the amendment. Critics argue that these modifications to IAS 39 made, it possible to camouflage losses of hundreds of billions of euros. The main goal of this study is to evaluate the amendment to IAS 39 & IFRS 7 by conducting a survey of the banking sector. Furthermore, fair value accounting in general is critically discussed.
Miroslav Skoda and Juraj Gabrhel, 2015. Fair Value Accounting after Times of Financial Crisis. International Business Management, 9: 676-684.