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Discuss the policy tradeoffs

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Representation of assets at FMV is  it Right.

Generally accepted accounting principles require that most assets be listed on the balance sheet at their historical cost (less any depreciation or amortization, of course). An alternative would be to list assets at their fair market value. Discuss the policy tradeoffs involved in deciding whether to use historical cost or fair market value to value assets on the balance sheet.

Reference no: EM1314008

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