Historical Cost Accounting - Are Changes Needed?
Powers, Ollie S., Business Credit
One of the most basic principles of financial accounting is the historical cost principle. It requires that most assets and liabilities of a business be accounted for on the basis of their original acquisition cost, subject in some cases to periodic write-offs in the form of amortization or depreciation.
Theoreticians, as well as members of the business and financial communities, have debated for years the advantages and disadvantages of historical cost. The authoritative bodies within the accounting profession have considered addressing its deficiencies in formulating standards that comprise generally accepted accounting principles (GAAP). In this regard, the Financial Accounting …
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Publication information: Article title: Historical Cost Accounting - Are Changes Needed?. Contributors: Powers, Ollie S. - Author. Magazine title: Business Credit. Volume: 93. Issue: 5 Publication date: May 1991. Page number: 23+. © 1999 National Association of Credit Management. Provided by ProQuest LLC. All Rights Reserved.
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