Fair Value Applications and Stewardship Report in Accounting

Abstract

The purpose of this study is to determine if fair value accounting report financial reporting information that is beneficial for assessing the stewardship role of management in organization. This is consistent with recent trends in financial reporting, which have shifted towards fair value evaluation. The study used a library method, which involved reviewing existing literature on the use of fair value accounting and stewardship information. To do this, a number of papers with the themes of "fair value measurement" and "stewardship report" were analyzed using a narrative method. The review's findings reveal that using fair value measurement in accounting may not accurately disclose management stewardship in an organization since it may include transactions that managers do not control. As a result, the thesis of this paper is that historical cost information be included in annual reports to guarantee that organizations disclose stewardship information accurately.