Accounting for hard-to-value assets often involves assumptions about how a market would behave. But what if there were several reasonable assumptions to choose from, each leading to a different outcome?

Investors may soon find out. The Financial Accounting Standards Board has proposed a measure that would force companies to disclose a range of possible valuations for assets, depending on the assumptions used, in cases where an established, liquid market does not exist. In such situations, companies employ sophisticated models and management discretion to arrive at fair value.

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