Both U.S.GAAP and IFRS specify the asset measurement basis for financial reporting and _____ is the initial measurement attribute for most assets.
A)Current Replacement Cost
B)Net Realizable Value
C)Fair Value
D)Present Value of Future Net Cash Flows
E)Acquisition cost

Question

Quizplus · Accepted Answer

Both U.S. GAAP and IFRS specify acquisition cost as the initial measurement attribute for most assets. This refers to the cost of acquiring the asset, including any expenses directly associated with acquiring or preparing the asset for its intended use. While fair value and present value of future net cash flows are also commonly used for asset measurement, they are not the initial measurement attribute specified by either accounting standard. Current replacement cost and net realizable value are not typically used as measurement bases for most assets.

Both USGAAP and IFRS Specify the Asset Measurement Basis for Financial