1. "Fair value accounting is argued to be conceptually and practically preferable to amortized cost accounting for most financial instruments, especially for financial institutions holding matched positions in these instruments." What are your views about this statement?
2. Statement of Financial Accounting Standards (SFAS) NO. 140 defines transfers of financial assets as conveyances of noncash financial assets by and to someone other than the issuer of the assets. These transfers include securitizations. What motivates issuers to securitize? Give some reasons.