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, fair value becomes the basis for accountability.

Question

Quizplus · Accepted Answer

Once cost is established, it remains the basis for accounting for the asset, regardless of any appreciation in value. Fair value may be used to provide additional information or to adjust the carrying amount of the asset, but it does not become the basis for accountability.

Once Cost Is Established for a Plant Asset, It Becomes