Finance: Fair value accounting during the financial crisis - Research Paper Example

Only on StudentShare

Extract of sample
Finance: Fair value accounting during the financial crisis

The impact of the overall situation of financial crisis had a severe reaction on the social institutions as well, leading unemployment rate to increase since a large number of finnacinal institutions had to face failures and ultimately, bankruptcy. As a result, a number of debates have been observed between investigators that the credit crunch was due to the misinterpretation of assets and hedging strategies in the shape of subprime loans and mortgage backed securities (Deff and Phelps). The major concern of the debaters was the implication of fair value accounting systems which led to the situation where it has been blamed for facilitating the sustainment of the financial crisis which has led to massive government bailouts of financial institutions. As a result, it was marked that the Bush administration, FASB and SEC responded to the financial crisis with Acts and amendments to take a grasp of the situation (Twaronite and Levine). The aim of this paper is to critically evaluate the role of the fair value accounting’s role in the financial crisis. This will be done by carefully taking an in-depth analysis of the accounting systems and alternatives. Also, different factors such as subprime loans, mortgage backed securities etc, have led the fair accounting system to affect the financial turmoil. ...Show more

Summary

[Name of Student] [Name of Instructor] [Name of Course] [Date] Fair Value Accounting During the Financial Crisis Part 1: Introduction: The financial crisis of 2007 has been a basis of a number of problems being faced by the international business and accounting profession in particular…
Author : umohr
Save Your Time for More Important Things
Let us write or edit the research paper on your topic
"Finance: Fair value accounting during the financial crisis"
with a personal 20% discount.
Grab the best paper

Related Essays

International Financial Strategies
From the paper it is evident that a global approach to regulate corporate governance will not benefit multinational companies, because economic as well as political aspects differ from one country to the other. The globalisation, which aimed the integration of the whole world economy, caused far reaching troubles to many economies.
12 pages (3000 words) Essay
Post Financial Crisis: Role of Audit
The paper highlights expectation gap and the framework of extended audit which could make the auditor’s report more informative for the general public so that they can make more informed decision. The term expectation gap signifies the difference between the expectation of the some people who have knowledge about some particular thing and the expectation of the people who depends upon the knowledge of the former.
10 pages (2500 words) Essay
Contemporary Issues in accointing and finance
Academic research is research done for a scholarly purpose only and it is not client-oriented; it is intended for theoretical or speculative purposes and does not have a practical intent or benefit. Accounting is imbued with a public interest and must serve the public interest first because it is put in a position of trust.
6 pages (1500 words) Coursework
AirJet Best Parts
This means that the company will be at the positive end in their profit and loss statement. Secondly, NPV analysis shows that the project provides a positive NPV which is calculated by discounting at the required rate of return. 4. Depreciation is not a cash flow item however; it does reduce income tax and subsequently adds back in the cash flow statement.
4 pages (1000 words) Coursework
Regulatory Response to the Financial Crisis which began in 2007
1). The problems in the United States financial system triggered almost worldwide repercussions and lead to regulatory responses on both national and international levels with calls for greater cooperation among countries to avert another crisis. In an attempt to prevent a reoccurrence of the situation and to deal with the problems that caused this crisis, both regulatory and market based solutions have been proposed (Chang 2010, p.
8 pages (2000 words) Essay
Fair Value Accounting and Subprime Crisis
The loans had collateral placed for them. The money was used to purchase subprime instruments like commercial papers. These instruments were trading fairly in the active market prior to the crisis. The observable market prices were used to measure fair value.
3 pages (750 words) Essay
Financial Advance accounting
It is very much necessary that these financial reports that become available to the stakeholders of a company help them considerably in their decision making process. IFRS was first introduced by International Accounting Standards Board (IASB). IASB was set up as an independent body in United Kingdom.
8 pages (2000 words) Essay
Too big to fail
nstitutions are just simply too big (to be allowed to fail) and the government must step in and provide some form of relief or bailout to save the entire financial and banking system from a total collapse which can have very serious consequences for the economy and the
1 pages (250 words) Movie Review
Selling own common stocks
the cash is exchanged between the corporation and shareholder for the purpose of reducing the number of shares outstanding. It is on the company to either keep the shares as treasury stock or retire these repurchased shares, which are available for re-issuance.
4 pages (1000 words) Research Paper
Fair value accounting
Under this kind of accounting method, corporations are liable to report loss in their balance sheets when fair of liabilities increases and that of assets decreases. Inclusion of such losses results
10 pages (2500 words) Coursework
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