the financial accounting standards board recently has issue several standards requiring recognition or disclosure of fair value estimates for assets and liabilities principally financial instruments Statements of financial accounting standards in addition many of their current agenda items and discussion documents address recognition and measurement issues relating to fair value accounting discussion Memoranda Recognition and measrement of financecial instruments and distinguishing between Liability and Equity instruments and accounting for instruments with characteristics of both Before implementing fair value accounting on amore comprehensive basis there is aneed to explore its basic characteristics