Question

All of the following are disadvantages of fair value use except aparability between companies may be impacted by different fair value measurements. b.fair values may cause more fluctuations as changes occur from period to period. c.fair values can only be used on balance sheet accounts. d.fair values may not be readily obtainable.

Answer 1

Answer:

The answer is c. fair values can only be used on balance sheet accounts.

Explanation:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This is value measurement generally used in accounting.