FAIR VALUE AND CORPORATE GOVERNANCE

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Abstract

Recently two discussion papers on a new paradigm for the International Accounting Standards (IAS) have attracted much controversy. In the new proposed paradigm the definition of fair value used in the US standard SFAS 157 for financial instruments and acquisitions is extended to all the IAS and stewardship is abolished as a separate objective of financial reporting. In this work, we revise the reasons behind these proposals and the criticisms they are attracting. In the light of this analysis and especially focusing on the corporate governance concerns, we discuss the opportunity for the IASB to retrace their steps back and to avoid pushing the fair value approach too far.

Keywords: Financial Reporting, Fair Value, Corporate Governance, Valuation

How to cite this paper: Polo, A. (2008). Fair value and corporate governance. Corporate Ownership & Control, 6(1-3), 382-384. https://doi.org/10.22495/cocv6i1c3p5