Investment valuation

Aug 26th, 2016
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While US GAAP requires assets to be valued at the lower of cost or market, there is a belief that assets with value fluctuations should be valued at market and adjusted on a regular basis. Create an argument supporting the use of market value for investment valuation. Provide support for your argument. Assess the potential abuses of companies using a market value approach to investment valuation and how it may impact decisions made by the public relying on the information.

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Asset ValuationRunning Head: ASSET VALUATIONAsset Valuation1Asset Valuation2Under US GAAP, it is required that, assets should be valued at lower of cost or marketprice. It is believed that, the assets which have fluctuations in the value are required to be valuedat market price. If the organizations around the world will make use of market value for thevaluation of investment then, it is likely that, correct valuation of the asset will be determined.For example, if a particular organization has to determine its net worth then, there could be asituation that, the cost could be lower than the market value and the net worth of the organizationwill be calculated as lower.In this way, from the point of view of the organization, it is important that, valuation ofassets is made at market value. The real worth of the organization is determined by using marketvalue. If the co

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