STANDARD BASIS OF THE FINANCIAL REPORTING AND FINANCIAL CRISIS

Authors

  • Ката Шкарић Јовановић, PhD full professor, Faculty of Economics in Belgrade

Keywords:

financial crisis, financial reports, fair value, pro-cyclicality, volatility

Abstract

Emergence and development of financial crisis which turned into economic crisis have caused deeper analysis of rules of financial reporting from professional public and politicians. International bodies for accounting standards IASB and FASB as an answer to the crisis have accelerated the adoption of the unique set of comprehensible and applicable standards of financial reporting. The concept of fair value has been especially under criticism. This paper analyses consequences of application of mixed concept of
fair value in financial crisis. Particular attention is drawn to the application problems of fair value in inactive and illiquid markets, the impact of fair value on pro-cyclicality of the financial markets and manifested volatility of financial reports.

Downloads

Download data is not yet available.

References

Stephen Penman: (2006) Financial Reporting Quality: Is Fair Value a Plus or Minus? Paper for presentation at eht Information for Better Markets Conference Institute of Chartered Accountants in England and Wels, December 18-19, 2006

Видети детаљније: Шкарић Јовановић Ката (2009): Финансијска криза – повод за преиспитивање основа вредновања финансијских инструмената, зборник радова 40. симпозијум Савеза рачуновођа и ревизора Републике Србије, Златибор, мај 2009 стр. 414-431.

IASB Expert-Advisory Panel, Measuring and disclosing the fair value of financial instruments in market that are no longer active, International Accounting Standards Board, London, October, 2008.

Fair Value Adoption – An Update, Deloitte, August 2008. www.iasplus/usa/0808fairvalueupdate.pdf

Bart, M.: (2004) Fair value and Financial Statement Volatility, in the Market Discipline Across Counties and Industries, ed. by Claudio Borio, Wiliam Curt Hunter, George G Kaufman, and Kostas Tsatsaronis , p. 324.

Ранковић, Ј.: (1992) Теорија и анализа биланса, Економски факултет, Београд.

www.iasb.org/The+organisation/Advisory+bodies/FCAG/Areas+within+the+Financial+Crisis+Advisory+Group+scope.htm

www.cfainstitute.org.

www.cfainstitute.org/aboutus/press/releases/20081002_01.html.

Downloads

Published

2010-06-30

How to Cite

Шкарић Јовановић, К. (2010). STANDARD BASIS OF THE FINANCIAL REPORTING AND FINANCIAL CRISIS. Acta Economica, 8(12), 103–124. Retrieved from https://ae.ef.unibl.org/index.php/AE/article/view/190

Issue

Section

Preliminary Communication