--- title: "Meaning & Key Takeaway of: The concept of fair value accounting is…" description: "\"The concept of fair value accounting is correct and useful, but the application during periods of crisis is problematic. It's another one of those unin..." image: "https://sms4smile.com/quotes/i/297/stephen-a-schwarzman-6794_consequences_the-concept-of-fair-value-accounting-is_857543.jpg" --- # The concept of fair value accounting is correct and… ![“The concept of fair value accounting is correct and useful, but the application during periods of crisis is problematic. It's another one of those unintended consequences of making a rule that's supposed to be good that turns out the other way.” quote by Stephen A. Schwarzman](https://sms4smile.com/quotes/i/297/stephen-a-schwarzman-6794_consequences_the-concept-of-fair-value-accounting-is_857543.jpg) [Download](https://sms4smile.com/quotes/i/297/stephen-a-schwarzman-6794_consequences_the-concept-of-fair-value-accounting-is_857543.jpg) [Open image](https://sms4smile.com/quotes/i/297/stephen-a-schwarzman-6794_consequences_the-concept-of-fair-value-accounting-is_857543.jpg) > “The concept of fair value accounting is correct and useful, but the application during periods of crisis is problematic. It's another one of those unintended consequences of making a rule that's supposed to be good that turns out the other way.” [Stephen A. Schwarzman](https://sms4smile.com/quotes/author/stephen-a-schwarzman/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Fair value accounting provides transparent asset pricing, yet during crises it can amplify volatility and mislead stakeholders. **In simple terms:** Fair value works normally but can hurt in crises. Key Takeaway Use caution and adjust rules in turbulent times. Themes accounting risk management financial stability Mood cautious analytical Type advisory critical When to use this quote - banking crises - investment analysis - corporate reporting - policy making Key Concepts fair value unintended consequences regulatory design Questions to Reflect On - How can standards balance transparency with stability? - When should exceptions be applied? A Different Perspective May overlook long‑term fundamentals in favor of short‑term market swings. ★ ★ ★ ★ ★ No ratings yet [Consequences](https://sms4smile.com/quotes/about/consequences/) [Crisis](https://sms4smile.com/quotes/about/crisis/) [Customer](https://sms4smile.com/quotes/about/customer/) [Unintended consequences](https://sms4smile.com/quotes/about/unintended-consequences/) [Value](https://sms4smile.com/quotes/about/value/) ## Related quotes > [“Accumulate reserves of inspiration at the fair value of unforeseen contingencies, for life is unfair.”](https://sms4smile.com/quotes/vikrmn-ca-vikram-verma/accumulate-reserves-of-inspiration-at-the-fair-value-of-unforeseen/) [Vikrmn: CA Vikram Verma](https://sms4smile.com/quotes/author/vikrmn-ca-vikram-verma/) > [“No longer were the prices of ordinary mortgage bonds allowed to roam inefficiently, for they were now linked to the CMO market, in much…](https://sms4smile.com/quotes/michael-lewis/no-longer-were-the-prices-of-ordinary-mortgage-bonds-allowed-to-roam/) [Michael Lewis](https://sms4smile.com/quotes/author/michael-lewis/) > [There is a lot of pain still to be had in the equity markets, particularly aimed at the risky end of the spectrum. 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