Here is a very important paper debunking fair value accounting published Geoffrey Whittington, Emeritus Professor of Financial Accounting in the Centre for Financial Analysis and Policy at the University of Cambridge and a former member of the IASB and a former “academic advisor” to the British ASB.
Proponents of a modification in the terrorist regime of Fair Value Accounting will find it provides excellent reinforcement, an invaluable reference to bolster the efforts of counter-revolutionary forces. Counter what? Bubble think, dear friends, the last remnant of which is FVA:
Click here to view “Whittington-Two-World-Views-2008
Just remember that the proponents of FVA are the last people on the planet who believe in efficient market theory. If you don’t believe that markets are efficient, continuous and complete (and that people are rational) you would never equate short term prices with value, as FVA does explicitly.
Thoughts?
Chris
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