Coverart for item
The Resource Fair value accounting, historical cost accounting, and systemic risk : policy issues and options for strengthening valuation and reducing risk, Michael D. Greenberg, Eric Helland, Noreen Clancy, James N. Dertouzos ; supported by the Goldman Sachs Global Markets Institute

Fair value accounting, historical cost accounting, and systemic risk : policy issues and options for strengthening valuation and reducing risk, Michael D. Greenberg, Eric Helland, Noreen Clancy, James N. Dertouzos ; supported by the Goldman Sachs Global Markets Institute

Label
Fair value accounting, historical cost accounting, and systemic risk : policy issues and options for strengthening valuation and reducing risk
Title
Fair value accounting, historical cost accounting, and systemic risk
Title remainder
policy issues and options for strengthening valuation and reducing risk
Statement of responsibility
Michael D. Greenberg, Eric Helland, Noreen Clancy, James N. Dertouzos ; supported by the Goldman Sachs Global Markets Institute
Creator
Contributor
Author
Sponsoring body
Subject
Language
eng
Summary
Fair value accounting (FVA) refers to the practice of updating the valuation of assets or securities on a regular basis, ideally by reference to current prices for similar assets or securities established in the context of a liquid market; historical cost accounting (HCA) instead records the value of an asset as the price at which it was originally purchased. In the wake of the 2008 financial crisis, conflicting arguments have been made about the contributions of valuation approaches in triggering the crisis. This report investigates and clarifies the relationship between these two accounting approaches and risks to the financial system. The authors examine the risk implications of FVA and HCA in the various situations in which each is used; assess the role that these accounting approaches have played historically in financial crises, including the 2008 financial crisis, the savings and loan crisis of the 1980s, and the less developed country debt crisis of the 1970s; and explore insights about systemic risk that can be gleaned from better understanding the accounting approaches. The authors find that FVA was probably not a primary driver of the 2008 crisis. Moreover, they suggest that neither FVA nor HCA is objectively 0́better0́+ than the other. Instead, both accounting approaches can provide useful information for different contexts when applied rigorously, but when they are implemented poorly or when regulatory oversight is weak, both FVA and HCA can produce misleading information that can increase systemic risk across the financial sector. The authors conclude with a series of recommendations for how FVA and HCA, and the financial information that both methods generate, can be improved to better protect against systemic risk to the banking sector in the future
Cataloging source
YDXCP
http://library.link/vocab/creatorDate
1969-
http://library.link/vocab/creatorName
Greenberg, Michael D.
Illustrations
illustrations
Index
no index present
LC call number
HF5681.V3
LC item number
G795 2013
Literary form
non fiction
Nature of contents
bibliography
http://library.link/vocab/relatedWorkOrContributorDate
1950-
http://library.link/vocab/relatedWorkOrContributorName
  • Rand Corporation
  • RAND Center for Corporate Ethics and Governance
  • Helland, Eric
  • Clancy, Noreen
  • Dertouzos, James N.
http://library.link/vocab/subjectName
  • Fair value
  • Fair value
Label
Fair value accounting, historical cost accounting, and systemic risk : policy issues and options for strengthening valuation and reducing risk, Michael D. Greenberg, Eric Helland, Noreen Clancy, James N. Dertouzos ; supported by the Goldman Sachs Global Markets Institute
Instantiates
Publication
Copyright
Note
  • "Supported by the Goldman Sachs Global Markets Institute."
  • "RAND Center for Corporate Ethics and Governance"
  • "RR-370-CCEG"--Page [4] of cover
Bibliography note
Includes bibliographical references (pages 81-86)
Carrier category
volume
Carrier category code
  • nc
Carrier MARC source
rdacarrier
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Contents
Introduction -- Background: The Debate over FVA and HCA -- Systemic Risk and Accounting Approaches -- Accounting Standards and Prudential Regulation -- Lessons from Historical Episodes Involving Accounting Standards, Systemic Risk, and Financial Crisis -- Implementation and Risk: The Challenges to Doing FVA and HCA Well -- Conclusion and Policy Options -- Appendix: An Overview of HCA and FVA
Dimensions
28 cm
Extent
xxi, 86 pages
Isbn
9780833082121
Media category
unmediated
Media MARC source
rdamedia
Media type code
  • n
Other physical details
illustrations
System control number
  • (OCoLC)858601791
  • (OCoLC)ocn858601791
Label
Fair value accounting, historical cost accounting, and systemic risk : policy issues and options for strengthening valuation and reducing risk, Michael D. Greenberg, Eric Helland, Noreen Clancy, James N. Dertouzos ; supported by the Goldman Sachs Global Markets Institute
Publication
Copyright
Note
  • "Supported by the Goldman Sachs Global Markets Institute."
  • "RAND Center for Corporate Ethics and Governance"
  • "RR-370-CCEG"--Page [4] of cover
Bibliography note
Includes bibliographical references (pages 81-86)
Carrier category
volume
Carrier category code
  • nc
Carrier MARC source
rdacarrier
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Contents
Introduction -- Background: The Debate over FVA and HCA -- Systemic Risk and Accounting Approaches -- Accounting Standards and Prudential Regulation -- Lessons from Historical Episodes Involving Accounting Standards, Systemic Risk, and Financial Crisis -- Implementation and Risk: The Challenges to Doing FVA and HCA Well -- Conclusion and Policy Options -- Appendix: An Overview of HCA and FVA
Dimensions
28 cm
Extent
xxi, 86 pages
Isbn
9780833082121
Media category
unmediated
Media MARC source
rdamedia
Media type code
  • n
Other physical details
illustrations
System control number
  • (OCoLC)858601791
  • (OCoLC)ocn858601791

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