IDEAS home Printed from https://ideas.repec.org/a/but/manage/v15y2012i1p30-37.html
   My bibliography  Save this article

Credit Crisis with focus on level three valuations and FAS 157: Analysis and Recommendations for Change companies

Author

Listed:
  • Arber H. Hoti

    (Faculty of Economics, University of Prishtina, Republic of Kosovo)

Abstract

The paper examines the effect of level three valuations and FAS 157 implications on investors, auditors’ work, valuation disclosures and gives recommendations for improvements based on best practices. The aim of this research is to demonstrate that the fair value measurements should not be suspended. The standards provide for measurement of fair value in all market conditions. Therefore, level 3 measurements or mark-to-model is an answer for many issuers that are not sure how to measure their assets and liabilities at the fair value. The paper concludes that fair value measurement has not caused the current crisis and has no pro-cyclical effect and suggests several recommendations for policy makers and regulators.

Suggested Citation

  • Arber H. Hoti, 2012. "Credit Crisis with focus on level three valuations and FAS 157: Analysis and Recommendations for Change companies," Manager Journal, Faculty of Business and Administration, University of Bucharest, vol. 15(1), pages 30-37, May.
  • Handle: RePEc:but:manage:v:15:y:2012:i:1:p:30-37
    as

    Download full text from publisher

    File URL: http://manager.faa.ro/download/652_1506.pdf
    Download Restriction: no

    File URL: http://manager.faa.ro/en/article/Credit-Crisis-with-focus-on-level-three-valuations-anFAS157-Analysis-and-Recommendations-for-Change~652.html
    Download Restriction: no

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:but:manage:v:15:y:2012:i:1:p:30-37. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Cosmin Catalin Olteanu). General contact details of provider: http://edirc.repec.org/data/faaubro.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.