Is fair value a plus or a minus for industrial company?

Abstract

Measurement of assets in financial accounting is extremely complex and it can be stated that it represents the basic problem of accounting, which determines the content and the explanatory ability of the financial statements. Since the items of the accounts represent the input data for the calculation of financial ratios, from their measurement are dependent the results of financial analysis and overall assessment of the financial situation of an enterprise. Currently, at the time of continuing financial crisis the most discussed issue in measurement is the application or non-application of fair value measurement for assets. Can the current crisis change the approach to fair value measurement in financial accounting? This article is aimed at the assessment of risks arising from extending fair value measurement use and at the issue of fair value measurement at the time of financial crisis for industrial company.