Loftus Chapter 4 Fair Value Measurement, p. 123 Exercises 4.7 Emily Chasan (2008) reported: Its ridiculous to apply fair value accounting to assets that have no market, said Christopher Whalen, managing director of risk research firm Institutional Risk Analytics. All this volatility we now have in financial reporting and disclosure, its just absolute madness. Investors as a group have to get a better understanding of what the volatility means, said Ed Nusbaum, chief executive of accounting firm Grant Thornton. They want to live in a perfect world. Theyd like complete transparency and no surprises. But I think its unlikely that the big write-downs that weve seen will reverse. Required: Discuss the issues associated with fair value accounting for assets without an active market