ABSTRACT
The current objective (in the ordinary sense) financial situation of a reporting entity depends on the current willingness of the market to buy its assets, on the current selling prices of the reporting entity’s assets, and on the current conditions of the market permitting it to fund its liabilities riskfree, on the reporting entity’s current risk-free funding amounts, or on the willingness of its creditors to accept less currently. In contrast, assets are sometimes defined in terms of prospects (potential, promise, outlook):
“assets are service potential . . .”2
