Credit Crisis with focus on level three valuations and FAS 157: Analysis and Recommendations for Change companies

Arber H. Hoti
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Arber H. Hoti: Faculty of Economics, University of Prishtina, Republic of Kosovo

Manager Journal, 2012, vol. 15, issue 1, 30-37

Abstract: The paper examines the effect of level three valuations and FAS 157 implications on investors, auditors’ work, valuation disclosures and gives recommendations for improvements based on best practices. The aim of this research is to demonstrate that the fair value measurements should not be suspended. The standards provide for measurement of fair value in all market conditions. Therefore, level 3 measurements or mark-to-model is an answer for many issuers that are not sure how to measure their assets and liabilities at the fair value. The paper concludes that fair value measurement has not caused the current crisis and has no pro-cyclical effect and suggests several recommendations for policy makers and regulators.

Keywords: Level three valuations; FAS 157; financial reporting; mark-to-mark accounting (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:but:manage:v:15:y:2012:i:1:p:30-37

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