Overview
Part of the book series: Palgrave Macmillan Studies in Banking and Financial Institutions (SBFI)
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About this book
The 2008 financial crisis has turned a spotlight on the role of financial reporting in periods of economic downturn. In analysing the financial crisis, many commentators have attributed blame to fair value accounting (FVA) because of the pro-cyclical effect it potentially introduces in banks' financial statements.
This book discusses how FVA affects financial reporting during a financial crisis. It provides an in-depth analysis of the key benefits and negatives of FVA, and discusses the controversial practice of trade-offs with historical cost accounting (HCA). It provides an overview of the principles and applications of FVA, and explains its impact on banks' financial statements. Investigating the effect of FVA on the volatility of earnings and regulatory capital in European banks, the book asks whether incremental volatility is indeed reflected in bank share prices. It examines empirical evidence to quantify the role that FVA may have played in times of stress in the banking sector, both in Europe and elsewhere.
Fair Value Accounting explores the criticism FVA has received despite its perceived merits, and summarizes the various opposing views of parties in this major policy debate, which has involved banking and accounting regulators from across the globe.
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Keywords
Table of contents (4 chapters)
Authors and Affiliations
About the author
Elisa Menicucci obtained degrees in economics and business administration, and economics and management, from the University of Ancona and the Polytechnic University of Marche respectively, in Ancona, Italy. She went on to complete a PhD in business administration from the Polytechnic University of Marche in 2009. Elisa Menicucci works as temporary professor in business administration at the Polytechnic University of Marche, and as teaching expert in business valuation at Uninettuno University in Rome, Italy. She has participated in the International Commission of OIC (Organismo Italiano di Contabilità) and has worked as a chartered accountant and tax auditor since 2008.
Bibliographic Information
Book Title: Fair Value Accounting
Book Subtitle: Key Issues Arising from the Financial Crisis
Authors: Elisa Menicucci
Series Title: Palgrave Macmillan Studies in Banking and Financial Institutions
DOI: https://doi.org/10.1057/9781137448262
Publisher: Palgrave Pivot London
eBook Packages: Palgrave Economics & Finance Collection, Economics and Finance (R0)
Copyright Information: Palgrave Macmillan, a division of Macmillan Publishers Limited 2015
Hardcover ISBN: 978-1-137-44825-5Published: 22 December 2014
eBook ISBN: 978-1-137-44826-2Published: 22 December 2014
Series ISSN: 2523-336X
Series E-ISSN: 2523-3378
Edition Number: 1
Number of Pages: VIII, 121
Topics: International Economics, Macroeconomics/Monetary Economics//Financial Economics, Finance, general, Economic Theory/Quantitative Economics/Mathematical Methods, Accounting/Auditing