ABSTRACT
This chapter discusses the causes and effects of adopting fair value accounting in the European Union (EU) by using a broader perspective that considers accounting within its wider socioeconomic context. It discusses the financialization process and the view of business underlying the ascent of fair value measurements. The chapter conducts a ground-clearing exercise designed to set the framework within which financial reporting regulation should be discussed in the EU. It argues that researchers should definitely take into consideration the sociocultural features of the context under investigation. It raises some fundamental questions about the potential for academics to conduct more socially engaged research, which deals with the EU's specific challenges, thus contributing effectively to the social and economic advancement of society. Critical research has highlighted how the International Accounting Standards Board (IASB's) focus on equity investors represents the institutionalization of the shareholder value maximization paradigm in the form of accounting standards.
