Required:
1. Contrast the economic sacrifice and expected benefit approaches to long-lived asset valuation.
2. GAAP requires firms to use historical cost (in most cases) to report the value of long-lived assets. As a statement reader, do you think that firms should be encouraged to voluntarily report their asset values under alternative valuation approaches? Why or why not?
3. As the manager of a publicly held company, what costs and benefits do you see associated with the voluntary disclosure of asset values using approaches other than historical cost?