historic cost approach, the depreciation charges will be based totally on the original value of the assets, which might also be decrease than the modern-day market value. As a result, the pronounced earnings for the duration will be greater than if the market cost strategy had been chosen. Similarly, the announcement of cash flows will be affected, as the money outflows for the buy of the assets will be decrease below the historic price approach.
historic cost approach, the depreciation charges will be based totally on the original value of the assets, which might also be decrease than the modern-day market value. As a result, the pronounced earnings for the duration will be greater than if the market cost strategy had been chosen. Similarly, the announcement of cash flows will be affected, as the money outflows for the buy of the assets will be decrease below the historic price approach.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 1C
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Under the historic cost approach, the
what does the sentence mentioned above mean? please explain
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