The selection of historical cost over current value as the attribute to be measured for assets is an example of the trade-off of

Question

Quizplus · Accepted Answer

Selecting historical cost over current value prioritizes reliability over relevance. Historical cost is a reliable measure because the original transaction price is objective and verifiable, whereas current value may be subjective and difficult to measure. However, historical cost may not provide relevant information about the true value of the asset at present.

The Selection of Historical Cost Over Current Value as the Attribute