With the outbreak of the world financial crisis accounting practice has faced new big challenges. Certain influential people on important positions, particularly in the U.S., are ready to accuse current accounting practices of banks, more accurately the fair value accounting, for enormous losses and serious solvency problems of banks. Often, these condemns of fair value accounting are very sharp and even, one might say, unnecessary emotional. On the basis of arguments that we developed, we were not able to conclude that fair value accounting is the main or one of the major causes of financial crisis but we clearly pointed to the evident problems of today's accounting and prudential regulation of banks. If establishing of adequate financial reporting practices of banks is wanted it is important to avoid hasty moves, although such moves are imposed in order to 'extinguish the fire' of the current financial crisis. Design of banking reporting practices are faced with complex and multilayered dilemmas and at least two parties are very interested in the possible solutions, accounting regulators and prudential regulators. Following this trail, we assessed some of already adopted solutions as premature, forced and palliative. Finally, we critically evaluated remaining potential solutions and made recommendations for development of future practices based on good and necessary solutions.