HOW APPRAISERS DEVELOP FAIR VALUE
Management is responsible for its own financial decisions. If we take into account, that fair value concept was shown in financial crisis as something that does not work anymore in this way; there is a big need to develop it for the future. Non-professional readers of financial statements believe, h...
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| Format: | Article |
| Language: | English |
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University of Petrosani
2012-01-01
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| Series: | Annals of the University of Petrosani: Economics |
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| Online Access: | http://www.upet.ro/annals/economics/pdf/2012/part2/Skoda.pdf |
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| author | MIROSLAV ŠKODA |
| author_facet | MIROSLAV ŠKODA |
| author_sort | MIROSLAV ŠKODA |
| collection | DOAJ |
| description | Management is responsible for its own financial decisions. If we take into account, that fair value concept was shown in financial crisis as something that does not work anymore in this way; there is a big need to develop it for the future. Non-professional readers of financial statements believe, however, that company financials are the work of the public accounting firm that had signed the audit certificate. The main reason for bringing this point up is that when companies disclose Fair Value (FV) information in their financial statements, they are taking responsibility for the values disclosed. Management may often be encouraged to utilize the services of an outside professional, but at the end of the day, the outside appraiser is a hired gun. Although the appraiser has to take responsibility for his own work, hiring the appraiser does not absolve management of its ultimate responsibility. The obverse of this is also true. Management does not have to hire the appraiser to develop any fair value disclosures made in the financial statements. Developing FV information is not recommended as a do-it yourself undertaking, there is nothing in Generally Accepted Accounting Principles (GAAP) or Securities Exchange Commission (SEC) regulations, however, that requires an outside appraiser. |
| format | Article |
| id | doaj-art-4609c86cd39047e3b2c8a210ba172d70 |
| institution | DOAJ |
| issn | 1582-5949 2247-8620 |
| language | English |
| publishDate | 2012-01-01 |
| publisher | University of Petrosani |
| record_format | Article |
| series | Annals of the University of Petrosani: Economics |
| spelling | doaj-art-4609c86cd39047e3b2c8a210ba172d702025-08-20T02:43:37ZengUniversity of PetrosaniAnnals of the University of Petrosani: Economics1582-59492247-86202012-01-01XII2273284HOW APPRAISERS DEVELOP FAIR VALUEMIROSLAV ŠKODAManagement is responsible for its own financial decisions. If we take into account, that fair value concept was shown in financial crisis as something that does not work anymore in this way; there is a big need to develop it for the future. Non-professional readers of financial statements believe, however, that company financials are the work of the public accounting firm that had signed the audit certificate. The main reason for bringing this point up is that when companies disclose Fair Value (FV) information in their financial statements, they are taking responsibility for the values disclosed. Management may often be encouraged to utilize the services of an outside professional, but at the end of the day, the outside appraiser is a hired gun. Although the appraiser has to take responsibility for his own work, hiring the appraiser does not absolve management of its ultimate responsibility. The obverse of this is also true. Management does not have to hire the appraiser to develop any fair value disclosures made in the financial statements. Developing FV information is not recommended as a do-it yourself undertaking, there is nothing in Generally Accepted Accounting Principles (GAAP) or Securities Exchange Commission (SEC) regulations, however, that requires an outside appraiser.http://www.upet.ro/annals/economics/pdf/2012/part2/Skoda.pdffair valuefinancial executivesappraisersSECGAAPaccountingfinancial crisis |
| spellingShingle | MIROSLAV ŠKODA HOW APPRAISERS DEVELOP FAIR VALUE Annals of the University of Petrosani: Economics fair value financial executives appraisers SEC GAAP accounting financial crisis |
| title | HOW APPRAISERS DEVELOP FAIR VALUE |
| title_full | HOW APPRAISERS DEVELOP FAIR VALUE |
| title_fullStr | HOW APPRAISERS DEVELOP FAIR VALUE |
| title_full_unstemmed | HOW APPRAISERS DEVELOP FAIR VALUE |
| title_short | HOW APPRAISERS DEVELOP FAIR VALUE |
| title_sort | how appraisers develop fair value |
| topic | fair value financial executives appraisers SEC GAAP accounting financial crisis |
| url | http://www.upet.ro/annals/economics/pdf/2012/part2/Skoda.pdf |
| work_keys_str_mv | AT miroslavskoda howappraisersdevelopfairvalue |