o  In cases where a derivative contract is restructured, the MTM value of the contract on the date of the restructuring should be cash settled. While the factors responsible for the crisis are many, one that is being debated widely is the contribution of fair value accounting framework for complex and conventional financial instruments in amplifying the crisis.
The problem lies in the procyclical nature of the standard and the difficulty in valuing financial instruments when markets are illiquid or in distressed conditions. Although fair value may increase transparency of the company accounts, it may not always reflect the true intrinsic value in both upswings and under excessively stressed market conditions.