The Integration of Fair Value Accounting into U.S. GAAP: 1975-1995
Document Type
Article
Publication Date
5-2013
Department
School of Business
Abstract
This article focuses on the evolution of U.S. GAAP from an almost exclusive use of the “historical cost basis” to the gradual incorporation of the “fair value concept” into current accounting standards. Specifically, this ideological shift has occurred over a protracted period of almost forty years and includes financial reporting standards for leases, pension plans, investments in debt and equity securities, derivatives, business combinations, executive stock options, and employee stock ownership plans (ESOP). Because this path began much earlier than most people realize, it is readily apparent that this valuation shift is not solely a result of the recent regulatory efforts to converge U.S. GAAP and IFRS. This article specifically addresses the changes that occurred between 1975 and 1995.
First Page
135
Last Page
142
Volume
3
ISSN
19491794,19491786
Recommended Citation
Hunter, D. R., Shanklin, S. B., & Ehlen, C. R. (2013). The integration of fair value accounting into U.S. GAAP: 1975-1995. Mustang Journal of Accounting and Finance, 3, 135-142.