... and Nikolaev (2012) suggest that less useful accounting information leads to a decrease in the use of balance sheet debt covenants. Similarly, some authors argue that an increase in the use of fair value accounting in the U.S. has eroded the use of balance sheet debt covenants ( Christensen and Nikolaev 2012...

... and Leftwich 1983 ; Watts and Zimmerman 1990 ). IFRS adoption fair value accounting property, plant, and equipment Public companies in Canada were required to adopt IFRS at the start of 2011. For the year of adoption, Canadian public firms were allowed an opportunity to revalue their Property...

...Clarence Goh; Chu Yeong Lim; Jeffrey Ng; Gary Pan; Kevin Ow Yong ABSTRACT We survey stakeholders in the financial reporting process to examine trust in fair value accounting. Although respondents demonstrate high confidence in financial statements, they believe that fair value accounting decreases...

... of Financial Accounting Standards (SFAS) 157. Critics of fair value accounting, including academics and politicians, argue that its use with respect to complex financial instruments ⁵ in the banking sector was a significant factor in the financial crisis ( Allen and Carletti 2008 ; Plantin, Sapra...