In general, standard setters require that most assets be recorded using historical cost because cost is representationally faithful.

Name: In general, standard setters require that most assets be recorded using historical cost because cost is representationally faithful.
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Historical cost is considered representationally faithful because it is based on the actual transaction value at the time the asset was acquired, providing a clear and verifiable record.

In General, Standard Setters Require That Most Assets Be Recorded