Part 1: "Fair Market Accounting" Please respond to the following:
• Create an argument for the use of Fair Market Accounting as opposed to historical cost. Provide support for your argument.
• Evaluate the effectiveness of the accounting principle guidelines for determining the market value of an asset, indicating improvements to these guidelines. Provide support for your recommendations.
Part 2: "Accounting for Derivatives" Please respond to the following:
• Assess the risks associated with derivatives instruments, indicating how these risks may be minimized for a publically traded company. Provide support for your rationale.
• As an investor, assess the potential financial concerns to be raised when reviewing the financial statements of a publically traded company containing derivative instruments providing a recommendation for how the concerns may be identified and addressed.