Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 2 - A Further Look at Financial Statements - Questions: 18

Answer

Fair value is sometimes a subjective measurement.

Work Step by Step

The amounts in financial reporting should be amounts with an objective basis. For items that have an established and readily obtainable fair value, fair value may be used in financial reports. For other items, such as collectibles, fair value is a more subjective value and therefore should be reported using actual cost.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.