Advanced Corporate Reporting

Contemporary issues in Corporate Reporting

"Over the last several decades, fair value measurement has taken centre stage in international discussions concerning the appropriate basis for measuring (and remeasuring) assets and liabilities.

Academics, policymakers, and practitioners alike have sought to attribute both positive and negative capital market outcomes to fair value measurements in corporate financial reports. Interest in this topic intensified because of the recent global financial crisis (...) and because of increasing reliance on fair value measurements that are inherently subject to bias and measurement error."

Requirement
In response to the above quote by McDonough et al. (2020), prepare a professional report that critically discusses fair value and its role within financial reporting.

As a measurement basis, fair value is far reaching and impacts several areas of financial reporting.

Therefore, you have an opportunity to direct your work in an area that interests you: for example, this may be how fair value is used, how it is interpreted, its impact on users of financial statements or how markets react to changes in fair value (e.g. the banking crisis of 2008). Therefore, to begin your exploration of this topic, I suggest you read the following:

- Mora et al. (2019). Fair Value Accounting: The Eternal Debate - AinE EAA Symposium, May 2018.
Accounting in Europe, 16(3), 237-255.
- McDonough, R., Panaretou, A. and Shakespeare, C. (2020). Fair value accounting: Current practice and perspectives for future research. Journal of Business Finance and Accounting, 47, 303- 332.
- Landsman, W. (2007). Is fair value accounting information relevant and reliable? Evidence from capital market research. Accounting and Business Research