What method is used when the true value of an asset cannot be accurately determined?

The correct method used when the true value of an asset cannot be accurately determined is the agreed value. This approach is particularly significant in contexts such as insurance, where the parties involved may have differing opinions on the asset's value.

With the agreed value method, the asset’s value is mutually determined and documented by both the insurer and the insured before a loss occurs. This helps to eliminate disputes over the value at the time of a claim, providing clear terms that all parties have consented to. It supports the smooth settlement of claims by establishing a predetermined value that is accepted regardless of fluctuating market conditions or unique asset characteristics that may affect its true market value.

In contrast, the other options do not effectively address the situation where asset valuation is uncertain in the same manner. Assumed value might suggest taking a speculative figure without mutual consent, projected value implies forecasting future worth rather than establishing current value, and standard value doesn't encapsulate the individualized agreement needed in cases of difficult asset valuation. This makes agreed value the most practical and reliable choice in such scenarios.