Volume 26 (2015) / Issue 1
The core element of Corporate Governance is the valuation and financing of a corporation's assets. Standards and norms for financial reporting are not global but vary worldwide. Given that valuation of assets determines profits and losses for corporations, and also liability to creditors, how that valuation is carried out is critical and useful knowledge. For this reason truth is important in the accounting context, this is not merely an accounting requirement, but a legal concept. This paper looks at the attempts that have been made to provide norms and standard for financial reporting. It considers the standards developed by the International Accounting Standards Board (IASB) and the international reaction to attempts to make these standards global. German company rules demonstrate the importance of assets to the legal order. Particular attention is given to the question of 'fair value', which raises important questions when companies operate internationally. Accounting becomes a question of competition for nations looking to attract investment. The attempted monopoly of the International Financial Reporting Standards (IFRS) are contemplated in light of the question 'what is fair value?' and alternative international accounting standards.
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