In the coming years, the most important accounting issue that will need to be resolved will involve the use of fair value accounting. There is a big gap between historical and fair value accounting and there are many pros and cons on both sides, but which method would be best to fairly state the actual and true cost of something. The current problem with fair value is the process of evaluating certain elements; in particular, we highlight level three assets/liabilities. Levels one and two can easily be determined by looking at the market as a guide and there are identical, observable assets/liabilities to compare them to. Therefore these items are valued immediately and correctly. But when it comes to a level three asset/liability, it is up to the preparers' "best judgment" to assign a value to that item. This valuation cannot be found using similar market observable inputs as they may be unique and difficult to compare to other assets/liabilities such as a building. At this point the preparer's judgment may be over or under and this amount could be ...