The nominal price analysis of trading financial assets at fair value

DOI

10.2991/icassr-15.2016.282How to use a DOI?

Keywords

trading financial assets; fair value; recognition; nominal price; rationality

Abstract

Recognizing trading financial assets at their fair value facilitates quick transaction and convenient accounting, however, it causes uncertainty in terms of reasonable price, validity of market and involvement of investors. On some levels, the determination of fair value is subjective and artificial to a large extent and lacking in objectivity. Assets recognition seemingly rational based on financial reports does not result in valid inflow of funds or turn trading financial assets into equivalent monetary funds. Conducting an analysis on the nominal price of trading financial assets is a re-visit of the prudence principle of accounting as well as an interpretation of rationality of fair value recognition.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Bayi Guan
AU  - Xuejie Wang
AU  - Zhanli Shang
AU  - Zhongquan Chen
PY  - 2016/08
DA  - 2016/08
TI  - The nominal price analysis of trading financial assets at fair value
BT  - Proceedings of the 3d International Conference on Applied Social Science Research
PB  - Atlantis Press
SP  - 1038
EP  - 1040
SN  - 1951-6851
UR  - https://doi.org/10.2991/icassr-15.2016.282
DO  - 10.2991/icassr-15.2016.282
ID  - Guan2016/08
ER  -