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Fair Value Accounting Fair Value Accounting CONTENTS 1. INTRODUCTION…………………………………………………………………………………………………52. BACKGROUND………………………………………………………………………………………………………………..53. THE FAIR VALUE MODEL…………………………………………………………………………………………………83.1 DEFINITION ……………………………………………………………………………………………………………….83.2 ARGUMENTS IN FAVOUR OF FULL FAIR VALUE ………………………………………………………….93.3 CRITICISMS OF THE FAIR VALUE MODEL………………………………………………………………….103.3.1 Relevance of fair value for banks accounting practices ……………………………………….113.3.2 Reliability of fair value ………………………………………………………………………………………..113.3.3 Comparability of financial information …………………………………………………………………123.3.4 Impact on the stability of the.