2020, Vol. 1, Issue 2, Part A
Historical cost versus current cost basis of accounting in preparing financial statements
Author(s): Md. Rouf Biswas
Abstract: Historical cost basis indicates that asset, liability or equity is recorded at its original acquisition cost where current cost basis indicates that assets and liabilities be measured at the current value at which they could be sold or settled as of the current date. This paper has shown the basic differences between historical cost basis and current cost basis of accounting. Five (05) manufacturing company has randomly selected to show the effect of each of these bases in preparing financial statements. Author has tried to focus the impact of two bases on various components of financial statements of selected manufacturing company. Statistical tools like mean, median and standard deviation have been used to focus the effects. Finally some recommendation has been made for better presentation of financial statements.
Pages: 47-51 | Views: 5048 | Downloads: 4393
Download Full Article: Click Here
How to cite this article:
Md. Rouf Biswas. Historical cost versus current cost basis of accounting in preparing financial statements. International Journal of Advanced Mass Communication and Journalism. 2020; 1(2): 47-51.