alexa Accounting

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Current value accounting (so-called fair value accounting) has been “fuelling” the recent financial crisis. Nevertheless, it was during this very financial crisis that it was (re-)introduced to banks in Germany in 2009. By contrast, current value accounting was abolished by the German legislature in 1884 on account of the founder crisis. The reasons given by the German legislature 128 years ago, which are entirely apposite to the current crisis, should have been taken into consideration before modernization of the German Commercial Code was effected.

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