The book talks extensively about relevance vs. reliability (representational faithfulness). In your Accounting Theory course, you learned about how to account for various assets. Below, I list 3 types of balance sheet assets. Briefly discuss how the asset is valued in the United States (cite the codification section you read for the various rules) and explain whether the standard setter has focused more on relevance or representational faithfulness in determining the rules for valuation. The focus may change depending on what phase of the asset's life you are discussing so think about that as you answer the question. For example, inventory is typically carried at cost using LIFO, FIFO, weighted average, but that changes in an impairment situation. If I had asked about inventory, you would need to make sure you discuss valuation under normal conditions and under impairment and discuss if the focus by the standard setter changes with respect to relevance and reliability. a. Property, plant, and equipment
b. Held to Maturity Debt Investments c. Assets developed from in house (internal) research and development