This week and last we go through some of the most common types of assets, including accounts receivable, inventory, property, plant & equipment ("PP&E") and intangible assets, both identifiable and goodwill (which is often referred to as an unidentifiable asset). GAAP has developed several ways of measuring such reported assets, including net realizable value (NRV), lower of cost or market (LCM), and depreciated and amortized cost (which are similar). 1. State which types of assets are measured each of these ways. 2. What is your impression of GAAP having all of these different measurement methods? Does it make sense? Does it improve information for external stakeholders or make it more difficult for them to analyze and compare companies? 3. Marketable securities are reported at market value, which is similar to fair value (what an asset would likely sell for if sold). Why doesn't GAAP require that fair value be used for all assets?