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Historical versus Current Fair Market Valuation

1.- Why many argue that historical costs should no longer be used in accounting because they are not relevant?
2.- Why many other argue that departing from historical cost introduces too much subjectivity into accounting?

EXPLAIN THE 2 ANSWERS AND PROVIDE A DEFENSE OF BOTH POINTS OF VIEW
and then explain why FASB chose to depart from historical costs in many of its recent SFASs.

It is not necessary to write an essay, just explain the two questions, and then explain why FASB chose to depart from historical costs in many of its recent SFASs in 1 PAGE OR MORE.

Solution Preview

I attached a FASB sfas and a two page argument on historical versus fair valuation. The FASB is in Adobe and it is detailed.

The argumentation is back ...

Solution Summary

This solution discusses the concepts of asset valuation in terms of historical cost and current fair market value. Included in the solution are excerpts from Financial Accounting Standards Board comments on the subject.

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