Abstract: Financial crisis originated from subprime mortgage crisis and subprime mortgage crisis. It refers to the financial storm that occurred in various states of the United States, which was triggered by the bankruptcy of subprime mortgage institutions, the closure of investment funds and the violent shock of the stock market. The shortage of liquidity in global financial markets is mainly a crisis. The "subprime mortgage crisis" in the United States began to emerge gradually in the spring of 2006. In August 2007, it began to sweep across the major world financial markets such as the United States, the European Union and Japan. Due to the subprime mortgage crisis, a series of non-performing loans were caused, and the assets of commercial banks, investment banks and fund systems faced asset write-downs, and the market prices of stocks, bonds and derivatives fell. Moreover, due to fair value accounting and its influence on shareholders and investors, there was a chain reaction and a financial crisis.

Keywords: financial crisis; Fair value; Past cost