Ophthalmology

Machine learning

Accounting

Positive accounting

Accounting standard

Business

Economics

Accounting information system

Mark-to-market accounting

Globe

Value (mathematics)

International Financial Reporting Standards

Computer science

Historical cost

Financial accounting

Fair value

Medicine

Journal of Business Finance &amp Accounting

A fundamental issue debated in the accounting literature centres on the appropriate basis for measuring firms’ assets and liabilities. During the last several decades, scholars have generated a growing body of important insights about the use of the fair value measurement attribute in financial reports around the globe. In this paper, we provide an overview of the institutional background of fair value accounting and the associated accounting standards that prescribe the use of fair value measurements under International Financial Reporting Standards and Generally Accepted Accounting Principles in the US. We discuss and document the extent to which firms across different industries and accounting regimes recognize and disclose in their financial reports assets and liabilities measured at fair value and we reflect on aspects of the fair value accounting literature. In doing this, we identify several areas in which additional research can further our understanding of fair value measurements and disclosures.

Fair value accounting: Current practice and perspectives for future research