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The reliability of Fair Value Measurements has been under scrutiny for decades, particularly since the method was abandoned following the Wall Street Crash of 1929. In the last few years, there has been renewed interest in the method and the Financial Accounting Standards Board has pushed the use of fair value measurements.  However, there are still unanswered research questions about the reliability of these measurements. This study digs deeper into this issue and also looks at conservative accounting, given the fact that it offers a strict and systematic approach for the recognition of revenue and expenses. Currently, there is a shortage of empirical studies on this topic basically because of the lack of data and the difficulty to verify fair value estimates.

accounting, accounting regulations