IDEAS home Printed from https://ideas.repec.org/a/taf/acceur/v6y2009i1p3-24.html
   My bibliography  Save this article

Fair Value Accounting and the Banking Crisis in 2008: Shooting the Messenger

Author

Listed:
  • Paul André
  • Anne Cazavan-Jeny
  • Wolfgang Dick
  • Chrystelle Richard
  • Peter Walton

Abstract

The paper sets out to analyse the effects of the financial crisis on the international standard-setter in 2008 and the attempts made to shoot the messenger -- to blame IAS 39 for creating the crisis for reporting unrealised losses, rather than the cause being bankers making bad investment decisions. It first provides a brief analysis of IAS 39 and fair value accounting for financial instruments. It then sets out the relationship with the Basel II banking regulatory regime. The main part of the paper is a chronological presentation of the events of 2008 as they impact upon the international standard-setting institution. In particular, we analyse the impact of the G20 requirements and the blunt intervention of the European Commission that led to amendments to IAS 39. The final part of the paper looks at the consequences as they are so far discernible and the damage done to the IASB by shooting the messenger.

Suggested Citation

  • Paul André & Anne Cazavan-Jeny & Wolfgang Dick & Chrystelle Richard & Peter Walton, 2009. "Fair Value Accounting and the Banking Crisis in 2008: Shooting the Messenger," Accounting in Europe, Taylor & Francis Journals, vol. 6(1), pages 3-24, June.
    • Handle: RePEc:taf:acceur:v:6:y:2009:i:1:p:3-24
    DOI: 10.1080/17449480902896346
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17449480902896346
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17449480902896346?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert Amzallag & Michel Magnan & Bryan Campbell, 2009. "A Banker's Perspective on the Financial Crisis," CIRANO Burgundy Reports 2009rb-02, CIRANO.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kabir, Humayun & Su, Li, 2022. "How did IFRS 15 affect the revenue recognition practices and financial statements of firms? Evidence from Australia and New Zealand," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 49(C).
    2. Nikolaos Eriotis & Theodoros Kounadeas & Dimitrios Vasiliou, 2019. "From IAS 39 To IFRS 9: Literature Review of Studies on the Implementation of IFRS in the European Banking Sector," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 9(3-4), pages 29-51.
    3. Pucci, Richard & Skærbæk, Peter, 2020. "The co-performation of financial economics in accounting standard-setting: A study of the translation of the expected credit loss model in IFRS 9," Accounting, Organizations and Society, Elsevier, vol. 81(C).
    4. Brandon Gipper & Brett J Lombardi & Douglas J Skinner, 2013. "The politics of accounting standard-setting: A review of empirical research," Australian Journal of Management, Australian School of Business, vol. 38(3), pages 523-551, December.
    5. , Aisdl, 2020. "The Serendipity Mindset," OSF Preprints w52y9, Center for Open Science.
    6. repec:hum:wpaper:sfb649dp2012-010 is not listed on IDEAS
    7. Andreicovici Ionela - Irina, 2011. "Examine The Past For Going Further: A Literature Review In The Field Of Fair Value," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 453-458, December.
    8. Jannis Bischof & Holger Daske, 2016. "Interpreting the European Union’s IFRS Endorsement Criteria: The Case of IFRS 9," Accounting in Europe, Taylor & Francis Journals, vol. 13(2), pages 129-168, May.
    9. Erb, Carsten & Pelger, Christoph, 2015. "“Twisting words”? A study of the construction and reconstruction of reliability in financial reporting standard-setting," Accounting, Organizations and Society, Elsevier, vol. 40(C), pages 13-40.
    10. Ciprian-Dan COSTEA, 2014. "Fair Value Implications On Romanian Capital Market," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 6, pages 43-48, December.
    11. García Osma, Beatriz & Mora, Araceli & Porcuna-Enguix, Luis, 2019. "Prudential supervisors’ independence and income smoothing in European banks," Journal of Banking & Finance, Elsevier, vol. 102(C), pages 156-176.
    12. Christoph Pelger & Nicole Spieß, 2017. "On the IASB’s construction of legitimacy – the case of the agenda consultation project," Accounting and Business Research, Taylor & Francis Journals, vol. 47(1), pages 64-90, January.
    13. Toman Cristina, 2012. "Global Financial Crisis – An Accounting Literature Review And Overview," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 966-971, July.
    14. , Aisdl, 2020. "Becoming Attuned," OSF Preprints j7f8y, Center for Open Science.
    15. Rene Johannes & Dedy Dedy & Abdullah Muksin, 2018. "The Preparation of Banking Industry in Implementing IFRS 9 Financial Instruments (A Case Study of HSBC Holdings Plc Listed on London Stock Exchange of Year 2015 2017)," International Journal of Economics and Financial Issues, Econjournals, vol. 8(6), pages 124-136.
    16. Carien Van Mourik & Peter Walton, 2018. "The European IFRS Endorsement Process – in Search of a Single Voice," Accounting in Europe, Taylor & Francis Journals, vol. 15(1), pages 1-32, January.
    17. Bischof, Jannis & Brüggemann, Ulf & Daske, Holger, 2012. "Fair value reclassifications of financial assets during the financial crisis," SFB 649 Discussion Papers 2012-010, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    18. Salvador Carmona, 2010. "Editorial," European Accounting Review, Taylor & Francis Journals, vol. 19(1), pages 1-5.
    19. Luqman Hakim & Martono Martono, 2019. "Fundamental Role of Macro and Microeconomics to Profitability and the Implications on Stock Return: Evidence from Banking Companies on the Indonesia Stock Exchange," International Journal of Economics and Financial Issues, Econjournals, vol. 9(6), pages 84-93.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.

      More about this item

      Statistics

      Access and download statistics

      Corrections

      All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:acceur:v:6:y:2009:i:1:p:3-24. See general information about how to correct material in RePEc.

      If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

      If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

      If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

      For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAIE20 .

      Please note that corrections may take a couple of weeks to filter through the various RePEc services.

      IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.