Question: 1 . The argument among accountants and financial statement users over the proper valuation procedures for assets and liabilities resulted in the release of SFAS

1 .

The argument among accountants and financial statement users over the proper valuation procedures for assets and liabilities resulted in the release of SFAS No

115 .

Both historical cost and current value accounting have critics and each can cause financial statements to not be faithfully represented.

.

Determine how current values might be determined for investments, land, buildings, equipment, patents, copyrights, trademarks and franchises.

.

How might the use of current values in the accounting records cause earnings volatility?

.

Discuss how management might manage earnings using current cost data.

.

How do the requirements established in SFAS

157

affect the use of fair value measurement in financial statements?

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