Student Writing Competition

Is Fair Value Fair?

Well-informed financial statement users readily recognize that accounting standards have changed throughout time, often in response to the demands of the marketplace. Such changes have modified how financial transactions are recorded in accounting records and how they are valued when reporting results of operations and financial statement positions.

Today’s business and financial transactions continue to increase in complexity, so determining the proper recording of accounting transactions, as well as the valuation of assets and obligations, remains at the forefront of accounting discussions at the global level.

There is no bigger controversy in the evolution of accounting and reporting standards than the concept and use of fair value in reporting financial results. Those who advocate the use of a historical cost-basis as the primary determinant for sound financial reporting argue that the reliability of financial data should be paramount. Thus, only the costs objectively determined through a completed exchange between willing parties can provide an indication of the value of a transaction. In contrast, those arguing for fair value in accounting believe that relevant information is more crucial when making decisions, and only fair value can reflect the true economic value underlying the event.

PICPA will award $4,000 to ambitious, business-savvy students with the conviction to present their case regarding fair value accounting through the 2009 Student Writing Competition.

Possible Subtopics

Does the use of fair value accurately portray the value underlying financial and economic transactions?
Should there be one universal standard for valuing the assets and obligations of all firms?
Can accounting standards allow for both historical cost and fair value and still produce meaningful information for decision-making?
Relevancy vs. Reliability: Is one more important than the other, depending upon the financial statement user?

Eligible Participants

Undergraduate accounting or business majors who attend Pennsylvania colleges and universities or those who maintain a permanent residence in Pennsylvania, but attend an out-of-state college

Prizes & Benefits

$2,000 for first place, $1,200 for second place, and $800 for third place
The accounting programs of the winning students receive $1,000, $600, and $400 respectively
First-place entry is published on CPAzone.org and featured in the Pennsylvania CPA Journal
All participants who have not graduated by award time will be offered a one-year, complimentary PICPA Student Affiliate membership

Entry Criteria

1,000-1,500 word research paper
50-75 word abstract
No co-authored papers accepted
12-point font required
Must contain proper citation of sources
Papers are evaluated for content, method of presentation, and writing style
Every submission must include an author information sheet. Do not include personal information on your paper.

Submission
Careers in Accounting Team
Pennsylvania Institute of Certified Public Accountants
1650 Arch St., 17th Floor
Philadelphia, PA 19103-2099

Deadline
April 10, 2009

Questions
Call the PICPA Careers in Accounting Team at (888) 272-2001 or e-mail schools@picpa.org

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	Student Writing Competition PICPA Student Affiliate Become a PICPA Student Affiliate! Be the first to know about upcoming contests, programs & events and discover the value! 2008 Winners 2007 Winners also available Is Fair Value Fair? Well-informed financial statement users readily recognize that accounting standards have changed throughout time, often in response to the demands of the marketplace. Such changes have modified how financial transactions are recorded in accounting records and how they are valued when reporting results of operations and financial statement positions. Today’s business and financial transactions continue to increase in complexity, so determining the proper recording of accounting transactions, as well as the valuation of assets and obligations, remains at the forefront of accounting discussions at the global level. There is no bigger controversy in the evolution of accounting and reporting standards than the concept and use of fair value in reporting financial results. Those who advocate the use of a historical cost-basis as the primary determinant for sound financial reporting argue that the reliability of financial data should be paramount. Thus, only the costs objectively determined through a completed exchange between willing parties can provide an indication of the value of a transaction. In contrast, those arguing for fair value in accounting believe that relevant information is more crucial when making decisions, and only fair value can reflect the true economic value underlying the event. PICPA will award $4,000 to ambitious, business-savvy students with the conviction to present their case regarding fair value accounting through the 2009 Student Writing Competition. Possible Subtopics Does the use of fair value accurately portray the value underlying financial and economic transactions? Should there be one universal standard for valuing the assets and obligations of all firms? Can accounting standards allow for both historical cost and fair value and still produce meaningful information for decision-making? Relevancy vs. Reliability: Is one more important than the other, depending upon the financial statement user? Eligible Participants Undergraduate accounting or business majors who attend Pennsylvania colleges and universities or those who maintain a permanent residence in Pennsylvania, but attend an out-of-state college Prizes & Benefits $2,000 for first place, $1,200 for second place, and $800 for third place The accounting programs of the winning students receive $1,000, $600, and $400 respectively First-place entry is published on CPAzone.org and featured in the Pennsylvania CPA Journal All participants who have not graduated by award time will be offered a one-year, complimentary PICPA Student Affiliate membership Entry Criteria 1,000-1,500 word research paper 50-75 word abstract No co-authored papers accepted 12-point font required Must contain proper citation of sources Papers are evaluated for content, method of presentation, and writing style Every submission must include an author information sheet. Do not include personal information on your paper. Submission Careers in Accounting Team Pennsylvania Institute of Certified Public Accountants 1650 Arch St., 17th Floor Philadelphia, PA 19103-2099 Deadline April 10, 2009 Questions Call the PICPA Careers in Accounting Team at (888) 272-2001 or e-mail schools@picpa.org
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