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The secret past of fair value : lessons from history applied to the French case

Richard, Jacques (2004), The secret past of fair value : lessons from history applied to the French case, Accounting in Europe, 1, 1, p. 95-107

Type
Article accepté pour publication ou publié
Date
2004
Journal name
Accounting in Europe
Volume
1
Number
1
Publisher
Routledge
Pages
95-107
Metadata
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Author(s)
Richard, Jacques
Abstract (EN)
This article reviews the present state of the debate in France on the introduction of IFRS. It suggests that history shows that market value was the dominant approach to balance sheet valuation in the nineteenth century, and analyses the ultimate replacement of static theory, using market values, by dynamic theory, which is based on historical cost and the going concern and permits the systematic write-off of assets, and allows more regular payment of dividends. The article suggests that IFRS, based on a mixture of fair value and value in use, assumes a valuation of companies based on their future profitability, hence the description of the approach as forward-looking accounting.
Subjects / Keywords
Aspects historiques; Juste valeur; France; Normes comptables internationales; Fair value
JEL
M41 - Accounting
M49 - Other