Why accountant keep using the historical cost principle even whtn is distorts the financial statement ? Preceding contribs)
22.
Assets such as machinery cannot be replaced at their historical cost but must be purchased at the current market value.
23.
On a historical cost basis, net profit would have risen 6 . 1 percent to 186 . 5 million guilders.
24.
If bridge maintenance had instead been performed regularly, the total estimated historical cost would have been about $ 81 million.
25.
Therefore, asset valuation was to be calculated by regulators based on a combination of historical cost and current return value.
26.
Net book value of an asset is basically the difference between the historical cost of that asset and its associated depreciation.
27.
The proposed rule would require the reporting of derivatives at current market value, rather than historical cost, in corporate financial statements.
28.
In subsequent periods, the historical cost along with taxation-driven depreciation methods does not help managers determine their current operational cost factors.
29.
The restatement of historical cost financial statements in terms of IAS 29 does not signify the abolishment of the historical cost model.
30.
This is confirmed by PricewaterhouseCoopers : " Inflation-adjusted financial statements are an extension to, not a departure from, historical cost accounting ."
