What is the advantage of using historical cost on the balance sheet for property, plant and equipment?

Question

Mutwakil Gabril · Answer

Its advantage for being verified easily.

Wilfredo Quito · Answer

Thank you for your kindness invitation.

I agree with all previous answers.

Regards

manseer muhammed ali · Answer

The main advantage of using historical cost on the balance sheet for property, plant and equipment is that historical cost can be verified. Generally, the cost at the time of purchase is documented with contracts, invoices, payments, transfer taxes, and so on.

Ahmed mohsen · Answer

The historical cost of plant and equipment (not land) is also used to determine the amount of depreciation expense reported on the income statement. The accumulated amount of depreciation is also reported as a deduction from the assets' historical costs reported on the balance sheet.

حمادة فوزي جمعة عشماوي · Answer

Historical cost is the acquisition of the original date of costs and buy it on the basis ofconsumption is determined on the original date of purchase and use

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What is the advantage of using historical cost on the balance sheet for property, plant and equipment?

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