The Relevance and Reliability of Fair Value Measurement

Authored by: Allister Wilson

The Routledge Companion to Fair Value and Financial Reporting

Print publication date:  May  2007
Online publication date:  August  2012

Print ISBN: 9780415423564
eBook ISBN: 9780203815151
Adobe ISBN: 9781136713101

10.4324/9780203815151.ch15

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Abstract

This is the first year in which we are presenting our results under IFRS. As expected, this method of accounting creates significant volatility in profit measures, although of course not in cash flow. This volatility results from the requirement to mark to market embedded and financial derivatives and the effective inability to account for economically matched transactions as hedges, this last effect resulting in asymmetric treatment of different parts of the same economic event.

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