Critics of fair value accounting argue that:
A)It ignores GAAP principles.
B)It relies too much on ratio analysis.
C)It ignores mark-to-market accounting.
D)It relies too heavily on estimates.

Question

Quizplus · Accepted Answer

Critics of fair value accounting argue that it relies too heavily on estimates, as it requires the use of subjective inputs and assumptions to determine the value of assets and liabilities. This can lead to volatility in reported earnings and financial instability.

Critics of Fair Value Accounting Argue That