Fair Value as an Expression of True and Fair Presentation

Accounting Remarks

Abstract

Fair value plays a central role in many accounting discussions as indicated by the vast amount of research on the last decade about it’s role in the American subprime crisis. This asset and liabilities measure, adopted in Brazil by the CPC in accordance to IASB norms, implies equity variations that worries some of the accounting information users. On the other hand, accounting conceptual framework situates true and fair presentation as an accounting assumption, in other words, it’s a starting point to accounting thougth. This paper scrutinizes the context where true and fair presentation lies on, settles a parallel with fair value concept, discusses some of it’s critical points and concludes about fair value suitability to accounting goals.