The State of Fair Value Accounting, Global Financial Crisis and Implications to Thailand

Abstract

It can be expected that the accounting of object economy have been eroded to the accounting of the monetary economy so to speak when applying it to the world of accounting. We should not confuse information (provision of information, A Statement of Basic Accounting Theory so-called ASOBAT 1966) with the accounting (the adjustment of interest). Strengthening information disclosure and the evolution of the accounting calculation is not same thing. The feature of recent accounting movement is that the information disclosure intention has come out strongly forward. In the accounting standard (rule), there are a standard related to the accounting calculation and a standard related to disclosure. The request to a latter rule has risen relatively today. The main reasons are in diversity, the upgrade, and the complication (expansion) of the monetary economy rather than the influence of the object economy. In such a situation, the evaluation judge function is also requested under the name of the accounting and the audit. Personally we believe that finance is supposed to play a supportive role for growth of object economy. Originally, computational or mathematical finance was for object economy to hedge the risk of creation of credit. Ironically, this advanced scientific approach drove up current financial crisis (as one of the most significant factors). What the world needing now is not engineering (skill) but a philosophy (thought), ethics rather than technique. The object economy bears the value creation, and there is finance only to support it (at least originally it was so). The philosophy for improving society is supposed to play more significant role and this is the original ideal way of scholarship hence power of wisdom. The evolution of the technology (e.g., mathematical financial tool) does not make the person happy at once. The present-day that the opposite has occurred is good example of this.