Legitimiteten af dagsværdi som målingsattribut ved indregning af finansielle instrumenter: En normativ, kritisk tilgang

Barbara A. Andersen

Student thesis: Master thesis

Abstract

This thesis analyses the legitimacy of fair value measurement in relation to recognition of financial assets in financial statements. Based on discussion and analysis on the theoretical term Fair Value measurement and the practical issues arising from it, a proposal for a more legitimate use of Fair Value measurement is developed. The thesis focuses on normative and philosophical aspects of the concept of Fair Value, and on related critics. On that basis, the historical development of the concept Fair Value as legitimate is identified and the norms, values ad assumptions that hold the concept, are discussed. First, the discrepancies related to practical application of a Fair Value concept in a non economic ideal market is discussed. Secondly, the discussion focuses on the epistemology underlying financial measurement and the implications this means. Based on the discussion and inspired by primarily the social philosopher Jürgen Habermas and the economy and statistics philosopher Nassim Thaleb, the proposal for a more legitimate use of Fair Value in financial statements is developed. Finally, two new international accounting standards are analyzed in order to compare current IASB (International Accounting Standard Board) practice to the developed proposal.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2011
Number of pages81