MEASURING THE IMPACT OF FAIR VALUE IN THE GLOBAL FINANCIAL CRISIS: IDENTIFYING THE PERCEPTION OF ECONOMIC EXPERTS AND FINANCIAL MARKET

• Main Author: Barreto, Eric
• Publication Date: 2012
• Other Authors: Murcia, Fernando Dal Ri, Lima, Iran Siqueira
• Format: Article
• Language: por
• Source: Revista de contabilidade e organizações
• Download full: https://www.revistas.usp.br/rco/article/view/52656
• topic: Measurement; fair value; financial crisis; economic crisis.; Mensuração; valor justo; crise financeira; crise econômica.

In the search for factors that have caused the world financial crisis, several aspects related to market regulation have been questioned by the academic community. Specifically in the accounting area, these questions regard the adoption of fair value measurements, characterized by an inherent subjectivity, opposed to historical cost approach, and its impact on the financial crises deflagration. In this scenario, the aim of this paper is to identify the perception of experts in financial market and economy regarding the impact of fair value measurement on the financial crisis. For that, semi-structured interviews with 13 professionals, including the former Ministers of Financial Affairs and the Presidents of Brazilian Central Bank, have been conducted. The results indicate that fair value accounting did not play a crucial role in the deflagration of the global financial crisis and could not have avoided it. Instead, some specialists mentioned that if fair value measurements were not used, the crisis might have been detected later. According to the experts, the main factors that triggered the crisis were: high leverage of banks, new financial instruments, and a loose monetary policy of USA government.