A study on the favorable accounting measurement for the Philippine banking industry

• Main Authors: Dy, Ryan Oliver T., Flores, Mary Kenwyn I., Fragante, Francis L., Viloria, Riyaldo B.
• Format: text
• Language: English
• Published: Animo Repository 2007
• Subjects: Banks and banking > Philippines > Accounting; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/14158
• Institution: De La Salle University

Fair value accounting is the use of fair value amounts at which an asset is exchanged or a liability settled between knowledgeable parties in an arm's length transaction for financial statement preparation. Although all industries have been affected by the adoption of the standards promoting such measure, the banking industry has taken much of the beating. The industry is primarily concerned with Fair Value's impact on the reliability of financial information and on the earnings volatility that may tamper with capital adequacy requirements. Central banks all over the world have been wary of potential imprudent behavior or banking institutions. Taking it to the local setting, the absence of liquid markets for fair values in the Philippines diveded bankers and experts in the feild of Accountancy as to the aptness of fair values in the banking industry. Considering the banking environment in the Philippines, a study on the favorable accounting measurement for the Philippine banking industry, initiated in the hope of providing banks stability and a better perception of its public, and its investors with sufficient understanding of fair value accounting for decision making, is presented here.