Historical Cost Accounting

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    Historical Cost Accounting

    Limitations of Historical Costing in times of Inflation Historical Cost accounting and its significance History of Historical Cost Accounting Techniques of Historical Cost Accounting Conclusion References: 1 2 3 *** The impact of inflation comes in the form of rising prices of output and assets. As the financial accounts are kept on Historical cost basis, so they don't take into consideration the impact of rise in the prices of assets and output. This may sometimes result into the overstated

    Words: 320 - Pages: 2

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    Analysis of Biological Assets Valuation Method with Fair Value Accounting and Historical Cost Accounting in Plantation Subsector of Indonesian Agricultural Industry in the Period of 2007-2012

    ANALYSIS OF BIOLOGICAL ASSETS VALUATION WITH FAIR VALUE ACCOUNTING AND HISTORICAL COST ACCOUNTING METHOD IN PLANTATION SUBSECTOR OF INDONESIAN AGRICULTURAL INDUSTRY IN THE PERIOD OF 2007-2012 Karina Putri Ramadhani1 and Indra Pratama2 1 Thesis Writer, Swiss German University 2 Thesis Advisor, Swiss German University Abstract The analysis of biological assets valuation with fair value accounting and historical cost accounting method in plantation subsector of Indonesian agricultural industry,

    Words: 3520 - Pages: 15

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    Historical Cost Accounting

    Financial Accounting – Historical Cost Accounting Student Name: Richard Simpson B00580164 Total Word Count: Contents Page Executive Summary The purpose of this report is to analyse historical cost accounting providing information on the strengths and weaknesses, alternatives to historical cost accounting and current regulatory guidance on how to deal with the effects of inflation on the financial statements. This report has also considered and explained the following

    Words: 321 - Pages: 2

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    Limitations of Historical Cost Accounting

    Limitations of historical cost accounting Financial statements prepared on the historical cost basis do not necessarily lead to a true and fair presentation of an entity’s performance or future potential if capital is not being maintained. Furthermore, actual assessment of performance through ratios such as return on capital are meaningless if profit are overstated, capital undervalued, and assets are valued under a mixture of conventions. Limitations of historical cost accounting include : •

    Words: 323 - Pages: 2

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    Limitations of Historical Cost Accounting

    National and International Approaches in Social Reporting Author(s): Franz Rothenbacher Reviewed work(s): Source: Social Indicators Research, Vol. 29, No. 1 (May, 1993), pp. 1-62 Published by: Springer Stable URL: http://www.jstor.org/stable/27522680 . Accessed: 25/11/2011 03:27 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp JSTOR is a not-for-profit service that helps scholars, researchers

    Words: 7633 - Pages: 31

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    Advantages and Disadvantages of Historical Cost Accounting

    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

    Words: 313 - Pages: 2

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    Dfsd

    Research Journal of Finance and Accounting ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol 3, No 8, 2012 www.iiste.org COMPARATIVE ANALYSIS OF FAIR VALUE AND HISTORICAL COST ACCOUNTING ON REPORTED PROFIT: A STUDY OF SELECTED MANUFACTURING COMPANIES IN NIGERIA BESSONG, PETER KEKUNG and CHARLES, EFFIONG DEPARTMENT OF ACCOUNTING FACULTY OF MANAGEMENT SCIENCES UNIVERSITY OF CALABAR, P.M.B.1115, CALABAR, CROSS RIVER STATE, NIGERIA Tel: +234 8037079607 ABSTRACT This study aimed to critically

    Words: 12475 - Pages: 50

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    Why Fair Value Is the Rule

    should be used in the accounting system. She states that fair value takes over for the old, worn out system of keeping books at historical value. She talks about how using fair value makes account more reliable. Also, it was believed fair value accounting was part of the reason the stock market crashed in 1929. Another point that Karthik had was why people actually support fair value. Fair value replaced the old, worn out system of keep books at historical value. With historical value, you never really

    Words: 662 - Pages: 3

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    Historical Cost Disavantage

    In accounting, historical cost is the original monetary value of an economic item.[1] Historical cost is based on the stable measuring unit assumption. In some circumstances, assets and liabilities may be shown at their historical cost, as if there had been no change in value since the date of acquisition. The balance sheet value of the item may therefore differ from the "true" value. While historical cost is criticised for its inaccuracy (deviation from "true" value), it remains in use in most

    Words: 1987 - Pages: 8

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    Historical Cost Account

    1 historical cost accounting (hca) is the situation in which accountants record revenue, expenditure and asset acquisition and disposal at historical cost: that is, the actual amounts of money, or money's worth, received or paid to complete the transaction. 2 nature of historical cost accounting this is one of those idiosyncratic headings that teachers dream up (me too, probably!) that meant nothing to me without further explanation 3 the big advantage of hca is that it leads to absolute certainty

    Words: 2561 - Pages: 11

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