In their article “The subprime lending crisis and reliable reporting,” Foster and Shastri explain that neither fair value or historical cost is likely to be both wholly relevant and reliable and that there is often a trade-off between the two
economics
Description
In their article “The subprime lending crisis and reliable reporting,” Foster and Shastri explain that neither fair value or historical cost is likely to be both wholly relevant and reliable and that there is often a trade-off between the two. In practice, which measurement method, historical cost or fair value would provide the ‘best’ accounting information? Use your knowledge of accounting scandals and the financial crisis. Student A will argue in favor of relevance and the fair value measurement method. I am the Student A who will argue in favor of relevance and fair value measurement method.
