Difficulties in financial statement analysis

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Reference no: EM13942057

Over the past few decades there have been many arguments that assets should not be recorded at historical cost and should be recorded at fair value. Of course, there have been just as many arguments that historical cost is the proper method of recording assets.

Please respond to all of the following prompts in the class discussion section of your online course:

  • Many assets are presented at historical cost. Why does this accounting principle cause difficulties in financial statement analysis?

Reference no: EM13942057

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