Need help with my writing homework on Fair Value Accounting. Write a 4250 word paper answering;

Need help with my writing homework on Fair Value Accounting. Write a 4250 word paper answering; Since then, the pros and cons of fair value accounting have been debated. On one hand, fair values provide a better view of current market conditions and therefore provide him with more relevant information. However, on the other hand it increases volatility in earnings and may not necessarily ensure reliability and relevance. This is because if an active market does not exist, it would be determined by calculations which are subject to management bias. While some people argue that fair value accounting provides us with truer financial statements, others question its validity. Hence, those institutions that use more and more of fair value option should also disclose adequate information regarding the assumptions, changes in acquisitions or sales, predictions and all those factors that affected the values that show in the financial statements as fair values. This would enable the users of financial statements to make knowledgeable and wise decisions.

Fair value accounting is a way of accounting in which an asset or liability is valued at its current exchange price at a measurement date, in absence of an actual transaction for that asset or liability. In financial statements, all financial instruments may be valued at fair value.