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Fair value is the appropriate approach for financial assets because it measurement is to estimate the value exchange of asset and liability in use, it provide investors with the estimated amount or value of balances in the balance sheet .the recognition of fair value which appears in the income,it is included as a component of the accumulated comprehensive income and recognised at amortised cost periodically also derivation to be measured and recognised at fair values.

According to an article, William Isaac, a former chairman of FDIC has blamed the credit crisis on the financial accounting standards which require that assets be valued in terms of their current market value, even if there is no market for them. Their claim was that this caused companies to write down asset values which may reduce banks' ability to lend. Also they have complaints and want the system of this accounting to be suspended.

使用公允价值会计准则的财务报告——Uses of fair value accounting in financial reporting

Fair value provides important information about financial assets and liabilities as compared to values based only on their historical cost (original price paid or received). Since fair value reflects current market conditions, it provides comparability of the value of financial instruments bought at different times. In addition, financial disclosures that use fair value provide investors with insight into prevailing market values, further helping to ensure the usefulness of financial

Fair value measures to comply with public reporting requirements, companies measure their financial instruments at fair value for a number of internal processes, including making investing and trading decisions, managing and measuring risks, determining how much capital to devote to various lines of business, and calculating compensation. The use of fair value measurements is deemed to be relevant in these areas.

Fair value is use to determined the value of asset and liabilities.

公允价值的测量——Measurement of fair value

Asset and liability are being measured using fair value because it reflects their condition at the date of acquisition in the process of impairment of an asset therefore; fair value would be limited to the recovery amount of that asset.

It was also discovered that the issue of fair value was addressed by an IASB exposure draft, fair value measurement, issued in May 2009. According to current accounting standards, the measurement of fair value is not well performed, showing that it 'provides neither a clear measurement objective nor a robust measurement framework.

Fair value is determined using the acquirer's accounting policies for similar asset and liability.

To determine some of the asset impairments

Some asset and liabilities are measured at it initial recognition using fair value method

Fair value is also used for measuring asset and liabilities at each balance sheet date.

These are some of the standards that require the use of fair value in measuring assets and liabilities.

IAS 11 - Construction Contracts

IAS 16 - Property, Plant and Equipment

IAS 17 - Leases

IAS 18 - Revenue

IAS 19 - Employee Benefits

IAS 20 - Accounting for Government Grants and Discl