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Stuart Joyner said: Today we call for a radical, full demerger of BP to close the acute discount to our view of fair value and upgrade from hold to buy with an unchanged target price of 550p.
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Instead, it should become a matter of fair value.
This effect even endures in the presence of fair value information about the asset being sold.
"The concept of fair value under Delaware law is not equivalent to the economic concept of fair market value," he wrote.
We have a view of what fair value is.
On a more fundamental tack, biotech company Xenova gained 1.75p to 17.75p as Bears Stearns initiated coverage of the stock, taking the view that fair value for the shares is 70p-75p if, as it suspects, trials of its crucial cancer drug are allowed to continue.
The problem with this bill, Professor Zitzewitz said, is that it reflects the regulatory and industry view that "stale-price arbitrage should be addressed with fees primarily, and occasional use of fair-value pricing".
There many arguments in favor of fair-value accounting.
And based on our intrinsic value of economic fair value, it's trading significantly below that value.
–Level 3: This is viewed as the weakest of evidence regarding fair value.
In addition, the evidence leaves little doubt that there is a sharp dissonance between standard setters' and CFOs' views on the proper determination of earnings, e.g., the roles of matching and fair value accounting.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com