Could the current financial crisis have been mitigated, if not averted, by applying different accounting standards?

According to many participants, the principle of “fair value accounting” is to blame for forcing financial institutions to value their assets at prices set in illiquid markets. This can mean the valuation is so low the owner has to sell the asset to raise capital. This pushes prices down further, causing more downward revaluations and a further wave of distressed selling.