Generally, under GAAP, market value is not used as the valua
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Generally, under GAAP, market value is not used as the valuation basis for assets. Cost is used instead. For marketable securities, however, market value is frequently used. Whatâ??s different about marketable securities that make it reasonable for this class of asset to be reported at market value when most other assets are reported at cost? Explain.
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Generally, under GAAP, market value is not used as the valuation basis for assets. Cost is used instead. For marketable securities, however, market value is frequently used. Whatâ??s different about marketable securities that make it reasonable for this class of asset to be reported at market value when most other assets are reported at cost? Explain.
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The reason why marketable securities are adjusted to their fair market value and then used at that amount is because if and when the company sells the financial assets, the marketable securities will be ...
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