Fair Value Accounting

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Have you guys heard of fair value accounting? Fair value accounting is where accountants record assets/liabilities at their market value rather than their historical value. I am currently taking this module on financial statement analysis and i was reading through the advantages and disadvantages of this approach. As i was reading through both, it all made sense to me and therefore, i would like to ask fellow mylotters of you view on it. Which do you think works better, fair value accounting or recording based on historical cost?