The article discusses the debate surrounding fair-value accounting (FVA) in the context of the 2008 financial crisis. It highlights four key issues: confusion about what is new about FVA, concerns about marking to market during crises, the limitations of historical cost accounting (HCA), and implementation challenges. The authors argue that FVA is not solely responsible for the crisis and that HCA also has significant problems. They emphasize that FVA standards are not the root cause of the issues but that implementation problems, such as litigation risks, could be a concern. The article also discusses the potential for FVA to contribute to contagion and procyclicality in financial markets. It suggests that while FVA provides timely information, it may also lead to excessive risk-taking. The authors conclude that both FVA and HCA have trade-offs and that further research is needed to understand the role of FVA in the crisis. They suggest that future research should focus on the extent to which FVA contributed to the crisis through contagion effects and the role of HCA in the crisis. The article also highlights the importance of considering the institutional environment when evaluating accounting standards.The article discusses the debate surrounding fair-value accounting (FVA) in the context of the 2008 financial crisis. It highlights four key issues: confusion about what is new about FVA, concerns about marking to market during crises, the limitations of historical cost accounting (HCA), and implementation challenges. The authors argue that FVA is not solely responsible for the crisis and that HCA also has significant problems. They emphasize that FVA standards are not the root cause of the issues but that implementation problems, such as litigation risks, could be a concern. The article also discusses the potential for FVA to contribute to contagion and procyclicality in financial markets. It suggests that while FVA provides timely information, it may also lead to excessive risk-taking. The authors conclude that both FVA and HCA have trade-offs and that further research is needed to understand the role of FVA in the crisis. They suggest that future research should focus on the extent to which FVA contributed to the crisis through contagion effects and the role of HCA in the crisis. The article also highlights the importance of considering the institutional environment when evaluating accounting standards.