According the Financial Accounting Standards Board's Statement No. 157 on fair value accounting, Level 3 assets ________.

A) must be reduced to book value
B) must be compared to market valuations
C) are hardest to value
D) are easiest to value

Level 3 Assets

These are financial assets and liabilities that are hard to value because they do not have a readily observable market price, often requiring significant estimation in their valuation.

Fair Value Accounting

An accounting approach where companies measure and report the values of their assets and liabilities on the basis of the actual or estimated fair market prices.

Book Value

The net value of a company's assets minus its liabilities, as recorded on its financial statements.