Market Value for Financial Reporting: The Premise

摘要

Valuation for financial reporting (VFR) is a central focus for the Appraisal Institute and the valuation profession. It is of immense importance to the public, domestic and international investors, regulators, and reporting entities. VFR requires a change in accounting conventions in the United States and Canada from depreciated historical cost to market value reporting of assets. Alternatively, market-based reporting can be added as a part of ongoing accounting and reporting reforms. This article provides a broad survey of the issues and institutions involved. It explains and illustrates a simple consequence of market value financial reporting, and describes global efforts to unify and reform financial reporting.