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The role of fair value accounting in the subprime mortgage crisis of 2008 is controversial. Fair value accounting was issued as US accounting standard FAS 157 in 2006. This required that tradable assets such as mortgage securities be valued according to their current market value rather than their historic cost or some future expected value. When the market for such securities became volatile and collapsed, the resulting loss of value had a major financial effect upon the institutions holding them even if they had no immediate plans to sell them. ==Fair value accounting== ===Definition of fair value accounting=== In 2006, the Financial Accounting Standards Board (FASB) implemented SFAS 157 in order to expand disclosures about fair value measurements in financial statements.〔http://www.fasb.org/summary/stsum157.shtml, “Summary of Statement No. 157” - FASB Pre-Codification Standards.〕 Fair-value accounting or "Mark-to-Market" is defined by FAS 157 as "a price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date". The definition is accompanied by a framework which categorize different types of assets and liabilities into 3 levels, and their measurement varied accordingly. The hierarchy of fair value is: (1) Assets or liabilities whose values could be observed on an active market of identical assets or liabilities. (2) Assets or liabilities whose value could be quoted from an inactive market, or based on internal-developed models, with input data from observable markets of similar items. (3) Financial assets and liabilities whose values couldn't be quoted from an observable market but instead based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. This requires management estimation that may lead to manipulation. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Fair value accounting and the subprime mortgage crisis」の詳細全文を読む スポンサード リンク
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