114-125

• Bonaci, Carmen Giorgiana
• Matis, Dumitru
• Strouhal, Jiři

Many people points towards fair value accounting for financial instruments as being one of the majoraggressors of financial crisis. We argue that it is just another case of shooting the messenger, by proving where thingsreally went wrong, and who could be considered responsible within the formed vicious cycle. The results show that fairvalue accounting is nothing but a “scapegoat”, while the ones who are now asking a restriction in the scope of fairvalue accounting should take more responsibility for their actions. An objective point of view implies making a clearerdistinction between accounting and prudential concerns. Fair value cannot be considered guilty for the actual financialcrisis, but only a messenger of it, case in which some reactions can be understood, because we all know the generalreaction towards the manager. In other words, the concept of fair value has the role to bring us as close as possible toreality, fact that could be realized through a correct implementation and a greater transparency, if used properly.Concluding by Churchill words about democracy: "it is the worst system with the exception of all others".

• Economics and Business

• Οικονομία
• Financial management
• Economics

fair value, financial crisis, historical costs, accounting measurement, value relevance, prudential concerns

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