Fair Value Accounting

Fair value accounting is intended to reflect in reported financial statements the essential economic, market-based information related to a firm’s activities.

It can provide early warnings of changes in a firm’s financial position by continuously reflecting the changing value of its assets and liabilities. It provides a more accurate picture of firm risk than historical cost accounting, which can obscure and defer recognition of economic realities.

A couple of articles have been published in Börsenzeitung:

Position on Hedge Accounting

New perspective on accounting

IAS 39

Transparency