Advanced Financial Reporting & Regulation Essay

Advanced Financial Reporting & law - Essay ExampleHowever, the proponents of the fairish nurture accounting method argued that this accounting technique was just a messenger and not a major cause or contributor of the subprime mortgage crisis.The paper critically valuatees the arguments that have been placed regarding the fair note value accounting method being a main origin for the occurrence of the subprime mortgage crisis or the GFC. The idea as to whether the fair value accounting method has in truth contributed to the monetary crisis or has only played a constrained role in exacerbating the glitz of the financial downturn is evaluated and assessed by taking into consideration the views and arguments presented by different scholars and academicians in their literary kit and boodle prepared and presented in this topic. The use of empirical evidences and descriptive information are made to analyze and assess the role of the fair value accounting method in the financial cri sis. The second part of the business relationship includes a comparison of the advantages and disadvantages of the fair value accounting method with the traditional accounting methods like the deprival value method of accounting, historical cost method of accounting and the replacement cost method of accounting. The report is think with a suitable conclusion in which it is highlighted that the role of the fair value accounting practice is more limited as a major reason for the occurrence of the Global Financial Crisis of 2008.The role of the fair value accounting technique in the financial crisis of 2008 is a controversial and highly debated topic. The fair value accounting method is the generally used accounting standard in the United States of America and has been qualify in the FAS 157 in the year 2007. This accounting method includes the terms of accounting in which the different kinds of financial assets like the mortgage backed securities are priced and valued as per the c urrent market value or mark to market value instead