what is gaap 
gaap generally accepted accounting principles was jointly created and issued by the financial accounting standards board fasb and the governmental accounting standards board gasb it sets accounting rules and standards that can be used across industries so financial information can be more easily compared and exchanged the bottom linethe fair value of level 2 assets is based on related intrinsic but not readily apparent factors and prices these values fall in the middle between assets that are true to their market prices and those with values that are educated guesses these assets are primarily held by investment firms and institutions understanding them can be key to undertaking certain types of investments 