From a measurement theoretical point of view, fair value accounting has much to recommend it, provided that the concept of measurement is properly understood. However, this has not typically been the case. Since the 1960s, the concept of measurement in accounting has been gravely misunderstood. This has led to unfortunate consequences, particularly for the concept of an asset. These two concepts are now in sore need of redefinition. Proper redefinitions, however, are nicely consonant with fair value accounting.