Investment Valuation Week 8 DQ 2 While US GAAP requires assets to be valued at the lower of cost or market, there is a belief that assets with value fluctuations should be valued at market and adjusted on a regular basis

# Investment Valuation Week 8 DQ 2 While US GAAP requires assets to be valued at the lower of cost or market, there is a belief that assets with value fluctuations should be valued at market and adjusted on a regular basis

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Investment Valuation Week 8 DQ 2

Question

While US GAAP requires assets to be valued at the lower of cost or market, there is a belief that assets with value fluctuations should be valued at market and adjusted on a regular basis. Create an argument supporting the use of market value for investment valuation. Provide support for your argument.

Assess the potential abuses of companies using a market value approach to investment valuation and how it may impact decisions made by the public relying on the information.

Solution

Market Value is the underlying value of an asset traded in the market. It is the general willing power of public to buy an asset. It is also called Fair market value.

Market Values are more relevant and more related to the current values and helps in comparing the...

Investment Valuation
solarc

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Excerpt from file: Investment Valuation Week 8 DQ 2 Question WhileUSGAAPrequiresassetstobevaluedatthelowerofcostor market,thereisabeliefthatassetswithvaluefluctuationsshouldbe valuedatmarketandadjustedonaregularbasis.Createanargument supportingtheuseofmarketvalueforinvestmentvaluation.Provide supportforyourargument.

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