I will review fair value accounting and depreciation. Fair value is the market value at which an asset can be sold or purchased. Ryan (2008) highlights many criticisms regarding fair value accounting, including reported losses that are misleading because when markets return to normal the losses will reverse. When a company revalues ​​assets or liabilities at a time when market conditions are negative, the value of the assets and liabilities begins to "swing". However, once the market stabilizes, assets and liabilities will be revalued to their original levels. This makes reports of gains and losses temporary which can be misleading to potential investors (Penman, 2007). Fair values ​​are unreliable as they are difficult to estimate, especially if the market is illiquid. And reported losses produce further losses that increase the overall risk of the financial system. For example, if the current market price of an asset drops and you then revalue the asset downward, people may start buying this asset at even lower prices (Benston,