Which accounting principle prevents companies from reporting their assets at their current market value?

1. Cost Principle

The cost principle requires that assets be recorded at the cash amount (or its equivalent) at the time that an asset is acquired. A variation on the concept is to allow the recorded cost of an asset to be lower than its original cost, if the market value of the asset is lower than the original cost. However, this variation does not allow the reverse - to revalue an asset upward. Thus, this lower of cost or market concept is a crushingly conservative view of the cost principle.

Cost Principal should be the right answer

My answer is1. Cost Principal

the cost principal requires the assets to be measured at cost IAS16 Property plant and equipment