question archive 3) Accounting standards have developed over time to reflect changes in the business world as well as changes in our ability to account for such changes
3) Accounting standards have developed over time to reflect changes in the business world as well as changes in our ability to account for such changes
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3) Accounting standards have developed over time to reflect changes in the business world as well as changes in our ability to account for such changes. Using the example of marking assets and liabilities to their fair value, explain why you would expect accounting standards to change.
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The Accounting standards have developed over time to reflect changes in the business world and also address changes in our ability to account for any changes. Using the example of marking assets and liabilities to their fair value, explanation for the reason I would expect Accounting standards to change is as follows:
The Historical cost in the past now as markets have matured, it is more relevant and feasible to report some assets and liabilities at their fair values.
The Historical cost is a cost measurement attribute under which asset and liability measurements are based on the amount given or received in an exchange transaction.
