Two schools of thought regarding the determination of financial statement elements exist. One is the asset/liability method (balance sheet method) that currently seems to be favored by the FASB & IASB. Proponents of fair value generally fall in this camp (from your readings, Barth & Landsman, Mosso, and Miller & Bahnson are examples). Another camp suggests that revenue and expense are the more relevant basic elements (income statement method). From your readings, Watts and Dichev are examples. Which approach makes more sense to you?