Review these two articles on the Advantages and Disadvantages of Fair Value Accounting and Fixed Asset Impairment as well as other resources on the topic that you locate Answer the following questions In your opinion, why do you think we don't use fair value accounting for fixed assets Do you think that fixed asset impairment approximates fair value accounting for fixed assets Why or why not Are there any key differences Based on the advantages and disadvantages of fair value accounting, would you recommend that fair value accounting be adopted for reporting fixed assets Why or why not Fair value accounting is used to report asset valuations for many assets on the balance sheet but not fixed assets, at least not yet Instead we employ asset impairment to test fixed assets, intangibles and natural resources to determine if the underlying value of the asset is expected to be less than the carrying value But is this really the same as reporting fair value

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Posted on Sep 16, 2024

Review these two articles on the Advantages and Disadvantages of Fair Value Accounting and Fixed Asset Impairment as well as other resources on the topic

Review these two articles on the Advantages and Disadvantages of Fair Value Accounting and Fixed Asset Impairment as well as other resources on the topic that you locate.
Answer the following questions:

In your opinion, why do you think we don't use fair value accounting for fixed assets?
Do you think that fixed asset impairment approximates fair value accounting for fixed assets? Why or why not? Are there any key differences?
Based on the advantages and disadvantages of fair value accounting, would you recommend that fair value accounting be adopted for reporting fixed assets? Why or why not?

Fair value accounting is used to report asset valuations for many assets on the balance sheet but not fixed assets, at least not yet. Instead we employ asset impairment to test fixed assets, intangibles and natural resources to determine if the underlying value of the asset is expected to be less than the carrying value. But is this really the same as reporting fair value?