Fair-value reporting of financial instruments: Good or bad?

ACCOUNTANCY

Recently, the CFA insititute of the US (website: ttp://www.cfainstitute.org"), representing financial analysts throughout the world, asked its members whether fair value requirements for financial institutions improve transparency and contribute to investor understanding of the risk profiles of these institutions. Seventy-nine per cent said yes. Seventy-four per cent surveyed believed that fair value accounting improved market integrity.

In a discussion paper entitled