March 25, 2010


Ernst & Young
Sadovnicheskaya Nab. 77, bld. 1
115035 Moscow
Russian Federation


19.30 Registration
20.00 Program
21.00 Networking Reception


Register Online

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Ernst & Young

The Economic Consequences of Increasing Accounting Transparency

Haresh Sapra, Professor of Accounting, Chicago Booth


Sapra will provide two general insights that are useful in evaluating the economic trade-offs of alternative accounting measurement rules. First, when there are multiple imperfections in the world, restricting a strict subset of it need not always improve welfare. Second, a firm is not a black box that operates independently of the measurement environment. Measuring a firm's operations affects the firm's actions which, in turn, affect the underlying distribution of cash flows that is being measured.

Using these two insights, Sapra will discuss the economic consequences of accounting measurement rules that strive for greater transparency. In particular, he focuses on the costs and benefits of fair value accounting and its implications for financial stability.

Read Sapra's article What Are the Economic Trade-offs in the Fair Value Debate? (PDF)

View Sapra's presentation here (PDF)