Assignment:
Question 1. 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.
Question 2. 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.