Which of the following is NOT an advantage of current entry value accounting? A)it requires the use of replacement cost figures for assets that the firm does not intend to replace. B)it provides more information by splitting the total profit into holding gains and operating profit. C)excluding holding gains from reported profit allows proper maintenance of 'business substance'. D)it provides a balance sheet based on current value.

Question

Quizplus · Accepted Answer

Current entry value accounting requires the use of replacement cost figures for assets that the firm intends to replace, not for assets it does not intend to replace. Therefore, this is not an advantage of current entry value accounting.

Which of the Following Is NOT an Advantage of Current