In the previous chapter, we have differentiated two accounting systems and provided a concise list of benefits that two accounting systems should provide to the investors, accountants, appraisers, and the market. Many practitioners believed that fair value accounting provides the platform to minimize asset valuation volatility and provides timely information through financial statements, earnings, and cash flow variability reflecting actual market conditions. With this information, investors and the market can make better economic decisions. But practically, many investors, appraisers, and practitioners believe that fair value accounting has proven unreliable and has created loopholes in credibly valuing the assets and created a spiral of an anomaly for the investors, appraisers, and accountants.
