What is the difference between historical cost accounting and fair value accounting?
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What is the difference between historical cost accounting and fair value accounting?
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- Why is the application of fair value principle in measuring the financial position less objective than that of the cost principle? Illustrate with an example the necessary condition for fair value measurement to become more objective.what is asset? what is gross profit?role of the cost and its impact on profitability?
- According to the historical cost system, what is the objective of accounting and the role of profit? What criticisms are made of profit calculated under the historical cost system?Is current cost included in the overall measurement bases? or only in the current value?What are the major uses of the gross profit method?