recorded assets

If the market value reflected solely the recorded assets of a company, Tobin's q would be 1.0.

As was later discovered, many of Enron's recorded assets and profits were inflated or even wholly fraudulent and nonexistent.

If Tobin's q is greater than 1.0, then the market value is greater than the value of the company's recorded assets.

Mutual funds and securities companies have recorded assets and some liabilities at fair value for decades in accordance with securities regulations and other accounting guidance.