外文翻譯--公允價值會計和當前金融危機（節(jié)選）

1、1中文 中文 2060 字， 字，1200 單詞， 單詞，6600 英文字符 英文字符出處： 出處：Source：John M. Trussel and Laura C. Rose. Fair Value Accounting and the Current Financial Crisis[J]. CPA Journal, 2009,79(6):26-30原文： 原文：Fair Value Accounting and the C

2、urrent Financial CrisisJonh M.Trussel and Laura C.RoseThe accounting for financial assets and liabilities is a complex issue that has been evolving toward the use of fair value. Both the FASB and IASB provide the option

3、of using fair value accounting in reporting financial assets and liabilities and certain other items. This move is not without controversy. Many have opined that the use of fair value accounting, as opposed to historical

4、 cost accounting, has helped cause the turmoil the financial markets. Research indicates that the exclusive use of one accounting method may not be efficient for financial institutions. The authors believe that the FASB

5、should consider an alternative accounting approach that would incorporate both systems and mitigate the inefficiencies of using just one accounting method.In seeking to explain the current financial crisis, the spotlight

6、 has turned to fair value accounting and financial institutions. FASB issued SFAS 157. Fair Value Measurements, in September 2006. Shortly thereafter, the problems related to the sub prime mortgage market began to surfac

7、e. Many began to question whether or not the current distress in financial institutions is related to the new accounting standard. Did the new standard exacerbate the problems or merely illuminate them?In October 2008. T

8、hen President George W. Bush signed into law the Emergency Economic Stabilization Act of 2008 (EESA), the so-called bailout bill. Under section 132 of the EESA. Congress gave the SEC the authority to suspend the use of f

9、air value accounting under SFAS 157. Section 133 requires the SEC to conduct a study of the fair value accounting as stipulated in SFAS 157. See Exhibit 1 for excerpts from these two sections of the EESA. Note that in Se

10、ction 133, Congress even calls on the SEC to “review the process used by the Financial Accounting Standards Board in developing accounting standards.“ This is a much broader 3a three-tier system of classifying assets. Le

11、vel one asset has an active market with observable market prices. These assets include publicly traded securities that have a quoted price and that are actively traded on a national securities exchange. Level two assets

12、do not have directly observable market prices. They are marked-to-market using inputs from observable market prices of similar assets. These may be prices of similar securities, interest rates, commercial real estate, an

13、d the like. Level three assets do not have observable market prices for the asset or similar assets, or the market may be illiquid. In this latter category, companies have to use more subjective estimates of fair value.

14、According to SFAS 157, level three consists of unobservable inputs, such as those that reflect the reporting entity's own assumptions about what market participants would use to price the asset (including risk), deve

15、loped using the best information available under a cost-benefit analysis. There is no requirement to verify whether the assumptions are in line with those of market participants. These thinly traded assets and liabilitie

16、s are measured using estimates based on the value the company believes a hypothetical third party would pay for them. The question becomes how to value illiquid, unique, or complex assets. Should companies apply their ow

17、n models? Some investors worry that this option gives company management too much discretion. The complexity of such assets suggests that it may not be possible to find a widely acceptable method.A related standard, SFAS

18、 159, The Fair Value Option for Financial Assets and Financial Liabilities., was issued in February 2007 and became effective for most companies on November 15. 2007. This standard gives companies the option of accountin

19、g for certain financial assets and liabilities at fair value. The optional adoption covers interest rate swaps, bonds, stocks, warranty obligations, and the like. This election can be made on an instrument-by- instrument

20、 basis, with the resulting unrealized gains and losses reported in earnings. The IASB also has a .standard that allows the use of fair value accounting for financial assets and liabilities (IAS 39, Financial Instruments: