Under GAAP,current cost (replacement cost)accounting may be used at the discretion of management.

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Under GAAP (Generally Accepted Accounting Principles), historical cost accounting is the primary valuation method, not current cost (replacement cost) accounting. Replacement cost accounting is not generally permitted for the initial recording of assets and their subsequent measurement in financial statements.

Under GAAP,current Cost (Replacement Cost)accounting May Be Used at the Discretion