Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 2 - Conceptual Framework for Financial Reporting - Questions - Page 68: 17

Answer

The fair value option is given to companies to use fair value as the basis of measurement of the financial assets/liabilities.

Work Step by Step

The fair value principle allows to introduce more subjective information in the financial accounting statements.
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