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This work, motivated by the controversy surrounding
fair value accounting for all financial instruments
in financial institutions, generates empirical
evidence on preparer and user preferences. An
understanding of actual perceptions is important for
standard-setters to determine the most acceptable
accounting standard for financial instruments,
particularly for the complex financial institutions
industry in Australia and Singapore, two prominent
financial markets of the Asian Pacific region. On
average, preparers neither strongly support nor
strongly oppose fair value accounting, while users
are slightly more supportive. Results show that
achieving the qualitative characteristics espoused by
the IASB framework for financial reporting is far
more important than trying to fulfill the different
needs of various groups. This slight support for fair
value accounting is part of a bigger tapestry of a
slow but steady movement towards fair value
measurement in financial accounting and reporting.
The findings would be useful to those interested in
accounting standards, especially in relation to fair
value accounting for financial instruments in
financial institutions.

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Rebecca Chyi Woan Tan, PhD: Research interest in internationalfinancial accounting, accounting education and also environmentalaccounting. Published in the International Journal of Accounting,Australian Accounting Review and Asian Review of Accounting.Senior Lecturer at The Australian National University, Canberra,Australia.

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