The FASB and IASB allow companies to make some different choices on how they value assets and liabilities. For example, the chapter discussed different ways of figuring out the cost of inventory. Also, the IASB allows companies to use either the depreciated cost method of accounting for fixed assets or a fair value method. Some scholars have criticized the existence of choices of accounting methods. For example, R. J. Chambers (1965/1969) wrote that:

We all conform with road rules for the better regulation of traffic, and with the rules of language for the better understanding of one another. There is no reason why companies may not be made to conform with uniform rules for the derivation of comparable financial information for the better conduct of the securities markets.

Do you think companies should be allowed to choose methods? Why, or why not?
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