The rise of Fair Value Accounting (FVA) has been characterised as one of the most significant developments in the international accounting standards-setting arena in recent years.

Required:

Outline the primary nature and scale of the shift from historic cost to fair value accounting by reference to particular international accounting standards that promote FVA. Also, provide a critical assessment of Perry and Nolkes claim (in their 2006 article entitled The Political Economy of International Accounting Standards) that the rise of FVA reflects a growing authority of transnational private interests, especially those of the financial services sector.