Article

 

The problems of fair value in small emerging market economies. The case of Slovenia (p.61-81)

by

Duhovnik Metka, Faculty of Economics, University of Ljubljana

Keywords : Fair Value, International Financial Reporting Standards, Emerging Market Economies, Slovenia

JEL classification : M41, O16, O19, P27

Abstract

Decision of the European Commission to make the International Financial Reporting Standards (IFRS) mandatory for the preparation of consolidated accounts of all listed entities within the European Union would create no problem if the IFRS were structured to cover accounting solutions for all levels of capital market development. Since this is not the case, the solutions in the IFRS, raise numerous questions in countries with less developed markets. The article presents the main problems of fair value accounting in the case of the small Slovenian market economy. At the same time, it suggests amendments to the financial reporting framework which would relieve the fair value measurement in emerging market economies.