Preferred method of asset and liability valuation

Reference no: EM13177559

The accounting standards refer to the preferred method of asset and liability valuation as ‘fair value'. A review of published financial statements indicates that ‘historic cost' is much more commonly used. Why do you think this is so? What is your recommendation?

Explain your answer by reference to the advantages and disadvantages of the several methods of valuation available to statement preparers

Reference no: EM13177559

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