Fair value accounting from a distributed cognition perspective

Noriaki Okamoto

Accounting forum, 2014, vol. 38, issue 3, 170-183

Abstract: This study offers a unique interdisciplinary perspective on fair value accounting. The growing influence of esoteric financial instruments whose valuation is becoming increasingly complex makes it necessary to focus on actual valuation practices. Based on an extensive review, this paper regards fair value accounting for complex financial instruments as involving processes distributed among actors located inside and/or outside a reporting entity. It also draws attention to collaboration by organizations that apply their external and internal resources to perform complex financial valuations. Furthermore, it demonstrates that cases involving unusual market conditions underline the importance of human interactions to the valuation process.

Keywords: Fair value accounting; Distributed cognition; Accounting for financial instruments; Investment companies; Financial crisis (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:eee:accfor:v:38:y:2014:i:3:p:170-183

DOI: 10.1016/j.accfor.2014.06.001

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