Investment valuation

Aug 26th, 2016
Studypool Tutor
Price: $15 USD

Tutor description

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.

Word Count: 307
Showing Page: 1/3
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

Review from student

Studypool Student
" <3 it, thanks for saving me time. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1821 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors