Fair Values Good, Historical Costs Bad - Essay Example

Only on StudentShare

Extract of sample
Fair Values Good, Historical Costs Bad

Accountants, not known for devising convenient mnemonics beyond “Debit Left, Credit Right”, have in the last two years or so found a reason to devise a new one as in our title. Why so? Are accountants finally rising up in arms against the wave of bad publicity generated by the recent scandals of the profession? Have the bean-counters tired of numbers? What in the balance sheet’s name is happening? The simple reason for the new mantra is that the accounting profession has decided on a new set of standards for the valuation of assets. Perhaps never before in accounting history has an issue generated such controversy as the debate between fair value and historical cost, which is reaching mythic proportions as a battle between good and evil. The accounting profession is one of the pillars of capitalism, a great invention of the modern era because it allows for transparency, fairness, and trust in the conduct of business (Johnson, 1975). Without accounting standards, it would have been impossible for the world of business to have gone as far as it has, simply because we would not have many of the aspects of business that we now take for granted. ...Show more

Summary

The accounting profession is one of the pillars of capitalism, a great invention of the modern era because it allows for transparency, fairness, and trust in the conduct of business (Johnson, 1975)…
Author : champlinboris
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Fair Values Good, Historical Costs Bad"
with a personal 20% discount.
Grab the best paper

Related Essays

Is ethical Business Good or Bad for Business?
The focus in this paper is on establishing whether ethical business is good or bad for business entities and this shall be given from the literature review findings from which the writer shall draw strong points to support ethical business conduct/operations. Thus, this paper wishes to present ethical business conduct as being good for businesses.
21 pages (5250 words) Essay
IRS
The nonprofit organizations and other people see this as the IRS acting beyond its scope of work. The IRS however claims it is justified to monitor the leadership of these organizations despite them falling outside its scope. IRS and Non Profit Organizations The Internal Revenue Service (IRS) is the government agency charged with the responsibility of tax collection.
5 pages (1250 words) Essay
Good Strategy/Bad Strategy
In this case, the author argues that it is the role of the managers to come with strategies that will be practical in the successful running of the business (Chapter 1). First, Rumelt indicates that the managers need to identify the nature of challenges facing the business so as to handle them effectively (Chapter 3).
3 pages (750 words) Book Report/Review
Parallel imports are good for welfare, not bad for welfare
Relieved of local advertising expenditures and other costs, the parallel importer can sell the goods at prices well below those the authorized distributor is willing to charge. Increases in the volume of world trade over the past decade have heightened the importance of such parallel importation.
8 pages (2000 words) Essay
Corporate Strategies The good and the bad
Then different Strategies are discussed to better understand the pro's and cons of each. After which an analysis is completed by a critical evaluation of the different theoretical models in use. The second part of the essay analyzes current corporate strategies implemented by corporations, and the successes and failures of their efforts.
12 pages (3000 words) Assignment
Service Marketing Article
Many changes have been occurred in the field of retailing and hence marketing functions too have been experiencing dramatic changes across the world by virtue of the unrelenting wave of globalization sweeping across the world. Real estate, franchising and retailing businesses are the most affected ones.
12 pages (3000 words) Article
Revenues and Fair Values
The key requirements of IAS 18 are reliability, recognition, and measurement of revenue. Revenue should be measured at the fair value of the consideration receivable (IAS 18 9). An exchange for goods or services of a similar nature and value is not regarded as a transaction that generates revenue, which only applies to exchanges of dissimilar items (IAS 18 12).
4 pages (1000 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT