Accountıng I Deneme Sınavı Sorusu #1313565

Which of the following require that the recorded monetary amount of the asset should be revalued at reporting date?


Historical cost principle

Fair value principle

Materiality

Monetary unit assumption

Relevance


Yanıt Açıklaması:

The fair value principle dictates that assets and liabilities should be reported at their fair values. Simply, fair value refers the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Therefore, contrary to historical cost principle, the recorded monetary amount of the asset should be revalued at reporting date according to the fair value principle.

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