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.© BrainMass Inc. brainmass.com October 24, 2018, 11:48 pm ad1c9bdddf
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 ...
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.
Mark to Market Accounting or historical cost
1. Identify and discuss why accounting rules require mark to market accounting for certain financial instruments, but continue to require the use of historical cost for other assets such as land, building, equipment etc.
2. What makes mark to market accounting so controversial? Explain whether you support or oppose the use of mark to market accounting as opposed to the use of historical cost for valuing assets. Your explanation should address whether you think mark to market or historical cost based models more useful.
3. Find an article discussing the impact of mark to market accounting rules on the financial statements of an affected company. Provide a summary of the article and attach a link the article. Identify the impact on the financial statement that the article refers to. Does your article support or oppose the use of mark to market accounting? Explain.View Full Posting Details