What method of fixed asset valuation would most likely be used in countries that regularly experience high rates of inflation?

Question

Quizplus · Accepted Answer

In countries with high rates of inflation, the fair value method of fixed asset valuation is typically used. This method takes into account current market conditions and adjusts the asset's value accordingly, which can help to provide a more accurate representation of the asset's worth in an inflationary environment. Historical cost accounting, which is commonly used in more stable economic environments, can result in misleading information when used in inflationary environments. Net realizable value and net present value methods are more commonly used for inventory and investment valuation, respectively, and are not typically applied to fixed asset valuation.

What Method of Fixed Asset Valuation Would Most Likely Be