International Accounting Standard No. 16 provides companies the option of valuing property, plant and equipment at either historical cost of fair value. If fair value is selected, then property, plant and equipment must be revalued periodically to fair value. Under fair value, if there is an increase in the value of the property, pant and equipment over the reporting period, then the increase is credited to stockholders equity. However, if there is a decrease in fair value, then the decrease is reported as an expense for the period. 1. Why do International Accounting Standards influence U.S. GAAP? 2. What would be some of the disadvantages of using fair value accounting for property, plant and equipment? 3. How is the international accounting treatment for changes in fair value for property, plant and equipment similar to investments