Question:
Fair value Accounting (FVA) has been subjected too much discussion over the last 12 months. Critics accuse FVA of deepening the current financial distress whilst proponents argue FVA is providing investors with information about the value of firms assets. Lobbyists from the banking industry have effectively had politicians use pressure on Accounting Standards Boards to redefine FVA.


With the current environment as a background discuss and explain FVA via the following theories:
1. Decision Usefulness
2. Positive Accounting and Agency
3. Regulatory


In answering you must show the interrelationship between the theories, practice and Australian regulatory environment.


Your answer must be supported by authoritative references.
Referencing required is Author, Date, Title of Article/ Book e.g. Scott (2009) Financial Accounting Theory


Text Book: Scott (2009) Financial Accounting Theory


Requirements: No general discussion, No economic issue discussion, No tax related, No auditing, No fraud based articles


Reference articles: prefer Most recent articles (2009)


Accounting Standards: framework / SAC1 / SAC 2 / AASB139 / AASB7


Marking guide : 2 files attached



Credit:ivythesis.typepad.com


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