Also the resources available for determining current values are scatter making updating these values a challenge. Therefore recording assets at cost satisfies the feasibility convention. This is primarily because the money paid to acquire an asset is easy to ascertain and record without too many adjustments. It should be not that the concept of cost creates problems only in relation to assets held by a business entity for longterm use and whose value undergoes significant changes. Any asset realiz in a short time does not suffer from this problem.
Examples of such assets
Include cash government securities Laos WhatsApp Number Data and amounts to be receiv from debtors. This is because for such assets their present value is practically equal to their cost. Therefore sometimes some fix assets have to be revalu for practical reasons. Such revaluations whether upward or downward must be disclos in terms of the amount and date of the revaluation for the subsequent fiveyear period. The positions relating to the concept of cost accounting can be summariz as follows Value as us in accounts signifies the amount at which an item is stat in accordance with the accounting principles relating to that item.
Using the word value
In this sense it can be said Latvia Phone Number List value generally represents the cost of an accounting unit or some modification thereof However sometimes this is determin in other ways for example bas on market value or replacement cost in which case this basis must be stat in the financial statements. The word value is rarely us in accounting reports without a qualifying purpose. Also read Cost Drivers in Cost Accounting Complete Discussion Examples of Cost Concepts in Accounting Records cost concept in accounting Lets consider the example of a business that buys a building worth billion in cash. In accounting records following the cost accounting concept.
