An asset should be initially recorded at either its historical acquisition cost or its cash equivalent purchase price, whichever is greater.

Question

Quizplus · Accepted Answer

An asset should be initially recorded at its historical acquisition cost or its cash equivalent purchase price, whichever is more directly associated with the acquisition, not whichever is greater. The principle is to reflect the actual cost to acquire the asset, not to choose between values based on magnitude.

An Asset Should Be Initially Recorded at Either Its Historical