The choices by the FASB and the IASB of what to measure also mean that some things are not typically measured or recognized in accounting. Consider what you think the effects of the following may be:

A. Companies do not record an asset for the skills of their workers.

B. Companies typically do not record an asset for their reputation for good customer service.

C. Companies do not typically record an expense for actions that adversely affect other people, unless the other people have the right to get cash. For example, a bar may be noisy, which bothers neighbors, but those neighbors are not entitled to any payments from the bar for this inconvenience.