Financial accounting standards board

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Reference no: EM133153628

The Financial Accounting Standards Board (FASB)'s Conceptual Framework presents five acceptable measurement attributes for financial reporting:

Historical cost

Replacement cost

Current market value

Net realizable value

Present value

Even though all of these measurement attributes are acceptable for financial reporting purposes, most of the financial statements elements are measured by historical cost.

Write an academic paper that compares the validity and reliability of historical cost to the other measurement attributes. Your paper should include discussion of:

The qualitative characteristics of each measurement attribute, including a definition and examples.

The assumptions related to various measurement attributes.

Your opinion on whether using historical cost has positive or negative effects on the informational value of a company's financial reporting.

Reference no: EM133153628

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