The emergence of a global economic crisis from the US mortgage crisis is attributed to a bundle of causes. It is often argued that international accounting standards led to the transmission of the crisis, particularly to the global banking system. This view is critical of the fair value measurement of financial instruments, as it results in significant volatility in balance sheets due to the consideration of every market fluctuation.

This study first addresses the background of this criticism and explains the origins and course of the financial crisis of 2008. In the subsequent analysis, the author investigates the accusation that the accounting regulations for financial instruments under IFRS contributed to the outbreak and transmission of the crisis. To this end, the consolidated financial statements of five of the most significant German banks are analyzed regarding the impact of fair value measurement of financial instruments on the banks' balance sheets. Furthermore, it examines to what extent fair value measurement is responsible for the enormous losses of banks in the crisis year 2008.