Introduction(2.5 pages) This paper aimed to discuss about the concept of fair value accounting, the difference between fair value accounting and historical cost accounting, how fair value accounting effect on financial statement, and fair value accounting alleged role in the financial crisis. Then brief introduce the four subtitles. Literature Search 1. What is fair value Fair value definition and measurements under US GAAP and IFRS Background for fair value reporting Fair value evolutionary Fair value characteristics? 2. Fair value vs. historical cost Fair value: advantages and disadvantages Historical cost: advantages and disadvantages which one makes more sense 3. Effects on financial statements Effects on Balance Sheet Effects on Income statement Effects on Cash Flow Statement Manipulation of Financial Statements 4. The present financial crisis and Fair value accounting Conclusion (2.5 pages) 20 References, Scholarly journals and full text, year 2005-2015 Requirements: total 30 pages, font size 12, double space, Times New Roman, Plagiarism no more than 10%!!