What is a major issue with traditional accounting?

A major issue with traditional accounting lies in the difficulties associated with measuring asset depreciation. This is a critical aspect of financial reporting and reflects how an asset's value decreases over time due to wear and tear, usage, or obsolescence.

Traditional accounting methods often rely on straight-line depreciation or declining balance methods, which may not accurately represent the actual use and diminishing value of the asset. This can lead to significant discrepancies in financial statements, impacting how stakeholders view the company's financial health and performance.

Additionally, the complexity of determining the appropriate methods for various assets, and changes in regulations or industry standards over time, can complicate the depreciation process further. If an organization's depreciation practices do not align with the current market conditions or actual use, it can result in either overstatement or understatement of asset values on the balance sheet, leading to potentially misleading financial information.

The other issues listed, while important, generally do not highlight the inherent instability in asset valuation as directly as the complexities surrounding measurement of asset depreciation do.