Unit 3 Discussion Part 2 Accounting
Topic #2: Fair Value?
Topic 2: Under traditional accounting methodology, historical cost is the accounting evaluation tool. However, when consolidations are implemented, the fair market value is used. Please consider the following questions:
- Why is it important that consolidations prescribe to fair value?
- When is the adjustment made?
- How often is the adjustment recalculated?
- How are the adjustments kept?
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