What the value of these shares would be in

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Question: Investments are recorded at cost and periodically adjusted to fair value. The FASB guidelines establish what the value of these shares would be in an open market. This can be a ground for fraud and some speculate this is how Enron did it. If there is no market for the shares, shares can be inflated, and no one will know. The fair market is a difficult value to determine when being adjusted in some cases because there might no longer be a market for these shares.

Reference no: EM133612001

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