Problem:
Introduction Fair value accounting and historical cost method are important measurements that equally have a place in the industry to be followed. Experts have examined whether fair value accounting is the cause of past economic disasters and if the historical cost would have been a more reasonable approach to prevent any catastrophes for financial users and reporters. We will discuss detailed concepts and comparisons involving fair value accounting and its impact. First, we will explain fair value accounting and historical cost methods while analyzing the strengths and weaknesses of both reporting methods. Second, if fair value accounting