"Should accounting systems be limited to historical costs" Essays and Research Papers

Sort By:
Satisfactory Essays
Good Essays
Better Essays
Powerful Essays
Best Essays
Page 1 of 50 - About 500 Essays
  • Good Essays

    Historical cost is a traditional method of recording assets and liabilities at their original or nominal value without making adjustments for inflation. It first came in evidence in Jun 1979 in a French project after numerous debates. The historical cost principle states that the asset should include all cost necessary to get the asset in place and ready for use. The principle of historical cost is based upon two fundamental principles: the principle of monetary standardization and principle of

    Premium Generally Accepted Accounting Principles Balance sheet Depreciation

    • 879 Words
    • 4 Pages
    Good Essays
  • Good Essays

    INTRODUCTION Realised-profit‚ matching-based‚ historical cost accruals accounting (HCA) has for over fifty years been repeatedly challenged as being an inadequate basis for the measurement of "income" which reports increments in the value of businesses. Such challenges continue unabated and are made by both accounting standards regulators and by academic commentators. Despite its obvious deficiencies for measuring valuation based income‚ and subject to concept of prudence‚ internationally HCA remains

    Premium Balance sheet Generally Accepted Accounting Principles Costs

    • 2266 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    Criticism on historical cost accounting 1. Inability to provide useful information in times of rising prices * Assumes that money holds a constant purchasing power‚ so the result become irrelevance in times of rising prices * Received much criticism during high inflation periods of 1970s and 1980s. * Obvious flaw in time of rising prices. 2. Real problem of additivity * Some countries allowed revaluation of non-current assets and the different assets are revaluing

    Premium Generally Accepted Accounting Principles Costs Cost

    • 482 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Cost Accounting System

    • 1155 Words
    • 5 Pages

    a) COST ACCOUNTING Cost accounting system is the part of management accounting that makes budget‚ actual cost of operations‚ analysis of variance and profitability of social use of funds. Cost accounting helps the manager in decision making regarding the reduction of the cost of the company and in improving the profitability. Cost accounting system is primarily used for internal managers therefore it does not need to follow the standards of GAAP. Cost accounting is also considered very important

    Premium Variable cost Costs Economics of production

    • 1155 Words
    • 5 Pages
    Better Essays
  • Good Essays

    disadvantages of Historical Cost accounting Historical cost accounting has been a controversial method that experienced many criticisms over a period of time‚ especially since it considers the acquisition cost of an asset and does not recognize the current market value. Merits and demerits of this method are as follows. The most obvious advantage of HC accounting is objectivity. It is a predominantly objective system‚ which records the original cost of an item when it was purchased. Under historical cost

    Premium Generally Accepted Accounting Principles Balance sheet Costs

    • 656 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Historical Cost

    • 2623 Words
    • 11 Pages

    The historical cost accounting is an accounting technique that values an asset for balance sheet purposes at the price paid for the asset at the time of its acquisition. It is usually used in combination with other measurement bases. For example‚ inventories are usually carried at the lower of cost and net realizable value‚ on the other hand marketable securities are usually carried at market value‚ and entities prefer to carry pension liabilities at their present value. The main advantage of using

    Premium Balance sheet Generally Accepted Accounting Principles Depreciation

    • 2623 Words
    • 11 Pages
    Good Essays
  • Better Essays

    Difference between historical cost and fair value accounting In order to make the most profitable and rational decisions entity’s stakeholders have to evaluate organisation’s financial statements. Today’s world of rapidly changing prices has made it difficult to estimate what something is actually worth. Thus leading to debates at what price – historical costing price or market value – assets and liabilities should be reported. Therefore‚ before making any evaluations about reported transactions

    Premium Balance sheet Generally Accepted Accounting Principles Asset

    • 1181 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Cost Accounting

    • 11176 Words
    • 45 Pages

    Chapter 1 Basic Cost Concepts Learning Objectives • To understand the meaning of different costing terms to understand different costing methods • To have a basic idea of different costing techniques • To understand the meaning of cost sheet In order to determine and take a dispassionate view about what lies beneath the surface of accounting figures‚ a financial analyst has to make use of different management accounting techniques. Cost techniques have a precedence over the other

    Premium Costs Cost accounting Management accounting

    • 11176 Words
    • 45 Pages
    Powerful Essays
  • Satisfactory Essays

    Cost Accounting

    • 418 Words
    • 2 Pages

    COST ACCOUNTING: A BRANCH OF ACCONTING THE PRINCIPAL PURPOSE OF WHCH IS TO DTERMINE THE COST OF A SINGLE UNIT OR SERVICES (FOR STOCK VALUATION‚COST PLANNING AND CONTROL AND PROFIT REPORTING PURPOSE) . OR A BRANCH OF ACCOUNTING THAT DEALS WITH THE ACCUMULATION AND ANALYSIS OF COST INFORMATION FOR INTERNAL USE TO AID MAMNAGEMENT IN PLANNING‚ CONTROL AND DECISION MAKING

    Premium Management accounting Accountancy Cost accounting

    • 418 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Cost Accounting

    • 3182 Words
    • 12 Pages

    manufacturing or trading‚ require cost accounting to track their activities.[1] Cost accounting has long been used to help managers understand the costs of running a business. Modern cost accounting originated during the industrial revolution‚ when the complexities of running a large scale business led to the development of systems for recording and tracking costs to help business owners and managers make decisions. In the early industrial age‚ most of the costs incurred by a business were what modern

    Premium Management accounting Costs Cost accounting

    • 3182 Words
    • 12 Pages
    Better Essays
Previous
Page 1 2 3 4 5 6 7 8 9 50