This question is based on the article entitled “Accounting Boards Issue Converged Fair Value Standards,” which appeared in CFO.com digital journal on May 12, 2011. The article quotes David Larsen, an accounting commentator, and consultant, saying that the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have both issued fair value accounting rules that are “almost word for word identical” and that “it is a big positive [for the argument] that convergence can be done.” Required The article states that the two standard-setting bodies are negotiating to ensure that all their respective accounting standards are as similar to one another as possible. Discuss which of the two theories of regulation this “convergence” effort is consistent with. These converged fair value accounting rules prescribe additional disclosures by firms about the methods used to measure fair value assets that do not have an active market. For example, firms are now required to disclose parameters, such as weighted average cost of capital, if used for the valuation of these assets. For a firm that carries a significant amount of such assets (that is, assets that do not have an active market), discuss one potential cost of providing these additional disclosures.