In: Accounting
During the Global Financial Crisis of 2008/9, it was claimed
that IFRS fair value accounting techniques used in corporate
reports had distorted financial reality and caused the
crisis.
(a) Describe those alleged problematic fair value accounting
techniques and standards, and state if you agree with the
criticisms and why
(b) In the period 2009-2020 do you think IFRS fair value standards
have improved? State your reasons and evidence
(c) In the event of a major economic downturn in 2020 or later do
you think assets will be appropriately measured by IFRS fair value
accounting standards? Explain