How far did the fair value principle contribute to accelerate the credit crisis in France?

Abstract

The IFRS or the International Financial Reporting Standards are one element of the globalization of the world economy. The stated objectives of the IASB or the International Accounting Standards Board are: (a) "to formulate and publish in the public interest, accounting standards to be observed in the presentation of financial statements and to promote their worldwide acceptance and observance, and (b) to work generally for the improvement and harmonization of regulations, accounting standards, and procedures relating to the presentation of financial statements". In other words, the main objective is to achieve a degree of comparability that will help investors make their decisions while reducing the costs of multinational enterprises in preparing multiple sets of accounts and reports. In July 2002, the European Union took a regulation deciding that by January 2005, the first European companies that are listed on the stock markets have to publish their accounts under the IFRS. We look into more details of this regulation in this document.