The measurement aspect of accounting in relation to asset valuation and presentation is specifically based on the use of historical cost. One of the main problems with historical cost is that it does not show the actual, updated value of the asset. The historical cost is the cost that was originally paid for the asset. This is the cost that must be shown on the balance sheet as the asset's cost. If I purchase an asset in 2010 for ...
This solution explains the measurement aspect of asset valuation in relation to the presentation of financial statements.