Once cost is established for a plant asset it becomes the basis of accounting for the asset unless the asset appreciates in value in which case market value becomes the basis for accountability.

Question

Quizplus · Accepted Answer

Once cost is established for a plant asset, it remains the basis of accounting for the asset even if the asset appreciates in value. Market value is only used for disclosure purposes and does not replace the cost basis of accounting.

Once Cost Is Established for a Plant Asset It Becomes