Financial Accounting 8th Edition
8th Edition
ISBN: 9781119210818
Author: Kimmel, Weygandt, Kieso
Publisher: WILEY
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Chapter 2, Problem 18Q
To determine
Measurement Principles: There are two measurement principles for accounting that the Generally Accepted Accounting Principles (GAAP) adopt, they are;
- I. Historical cost principle
- II. Fair value principle
The actual principle to be adopted depends on the outcome of the trade-offs between two factors, the relevance and the faithful representation.
To Discuss: The reason for not using fair value principle in all accounting measurement and reporting.
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Chapter 2 Solutions
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