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Fair Value Accounting Fraud
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Fair value accounting is the accounting profession’s equivalent of the automobile commercials you have seen on television, showing a vehicle racing around an obstacle course or bouncing over hills, along with a dis- claimer saying something to the effect that “This is a professional stunt driver on a closed course. Do not try this at home!” Fair value accounting is not for the timid. It is often not precise. It makes some people uncomfortable (they are called auditors). It involves a tremendous amount of judgment and estimation. It also frequently requires a highly specialized expertise. And whenever accounting involves a significant amount of judgment and estimation, it becomes infinitely more susceptible to manipulation and fraud. The role that fair value accounting may have played in connection with the current economic mess is an interesting one to debate, but is not really the subject of this book. The issue that cannot be disputed, however, is that the accounting rules regarding the use of fair value accounting are extremely complicated. This complexity has most certainly led to inconsistencies in the application of these rules. While most of these inconsistencies are likely the result of honest mistakes and, in some cases, a poor understanding of the rules, some will inevitably be determined to be more deliberate.
GERARD M. ZACK, CFE, CPA - Personal Name
978-0-470-47858-5
NONE
Fair Value Accounting Fraud
Accounting
English
2009
1-246
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