Generally accepted accounting principles (GAAP) require the use of fair value accounting for all assets and liabilities.

Generally Accepted Accounting Principles

A set of widely adhered to accounting principles and standards used in financial reporting.

Fair Value Accounting

An accounting approach where assets and liabilities are recorded at their current market value.

Assets and Liabilities

The resources owned by a company (assets) that provide future economic benefits and the obligations (liabilities) it owes to other entities.