Fair value accounting is an integral aspect of International Financial Reporting Standards (IFRS). In good times, everyone likes fair value accounting, however, in bad times, they are complaining. With the adoption of IFRS from 2011 by India, the debate on fair value accounting has exacerbated. Some argue that fair value accounting is procyclical and caused the recent credit crisis. However, subsequent research done by SEC indicates that financial institutions collapsed because of credit losses on doubtful mortgages, caused by subprime lending, and not fair value accounting.

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