TY - JOUR T1 - Transparency, Level 3 Assets, and the Investor JF - The Journal of Wealth Management SP - 77 LP - 79 DO - 10.3905/jwm.2013.16.2.077 VL - 16 IS - 2 AU - Tom Arnold AU - John H. Earl, Jr Y1 - 2014/07/31 UR - https://pm-research.com/content/16/2/77.abstract N2 - This Fair Value Accounting (FVA) advocacy comes from a belief that reflecting market prices as much as possible within financial statements leads to increased transparency for the investor. Firms (primarily banks) argue that illiquidity prevents such a notion and that FVA taken to an extreme leaves firms at the mercy of a market in disequilibrium, which will unjustifiably diminish balance sheet value. These issues are investigated and ultimately it is concluded that nether system, complete FVA or no FVA, will create complete transparency.TOPICS: Fundamental equity analysis, legal/regulatory/public policy ER -