Fair value accounting Fair value is the price at which an asset could be sold or a liability paid under normal circumstances, rather than under distressed circumstances. Some assets and liabilities are reported at or near their fair value, while others are not. In the following table, identify the assets or liabilities that are generally reported at or near their fair value. There is a general trend among accounting regulators, such as the Financial Accounting Standards Board (FASB), to adopt accounting principles that use fair values when reporting assets and liabilities. A variety of factors both support and oppose this trend. For instance, the fair values of assets are likely to fluctuate regularly. Is this a factor supporting the trend to use fair value accounting or a factor that illustrates a disadvantage to fair value accounting? Supports fair value accounting Illustrates a disadvantage to fair value accounting