When determining the cost of a plant asset, both IFRS and Canadian ASPE require the use of the market value principle.

Question

Quizplus · Accepted Answer

Both IFRS and Canadian ASPE require the use of the cost principle, which states that plant assets should be recorded at their historical cost or the cost to acquire them. The market value principle may be used to adjust the value of plant assets to reflect changes in their market value, but it is not the primary basis for determining their cost.

When Determining the Cost of a Plant Asset, Both IFRS