Corruption of traditional accounting principles

Over the last decade or two there has been a gradual corruption both on the American and European continents of the traditional principles of accounting as practiced for centuries. In many countries the (IAS), International Accounting Standards have abandoned the traditional principle of prudence and replaced it with the principle of fair value. This was a particularly positive principle, in good economic times, because it highly inflated the bottom line of the financial assets of brokerages, investment houses and in general in all that wanted to see "inflating" book values. Eventually the "bubble" that this practice created because of greed burst and we, economic sector and countries and individuals who bought into this artificial position found themselves holding worthless, non-liquid toxic investments. So instead of bitting the bullet and saying they made a greedy mistakes they, the central banks, the Fed, and semi-governmental institutions bought back this worthless "stuff" through various means including bailouts and creating more and more fiat money. The time now has come to stop the fiat money and create and monetary system not based on "wishing it so" but on one backed by hard assets worth something "in themselves". Will the governments of the world do this or will the "can" be kicked down the road to another generation which will only make the problem more difficult to solve because the hole we find ourselves in will only be much, much deeper?