Discussion for Applicability of the Fair Value Measurement in the Financial Crisis

In the context of the whole world financial crisis, the fair value measurement has been provoked furious condemnation. Some even require revert fair value measurement to historical cost valuation method. In this paper, the author analyze the relation between fair value and financial crisis, and on this basis, pointed out that the fair value measurement is only a catalyst rather than the root causes of the financial crisis. Fair value measurement still has applicability in the context of the financial crisis, and analyzed the reasons for the applicability of the fair value.