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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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Question added by Rana Alnajjar , Web developer , Lebcards
Date Posted: 2016/12/05
Mutwakil   Gabril
by Mutwakil Gabril , Student , Abu Dhabi University

Its advantage for being verified easily. 

Wilfredo Quito
by Wilfredo Quito , Accounting Manager , DDC LAND INC.

Thank you for your kindness invitation.

I agree with all previous answers.

Regards

manseer muhammed ali
by manseer muhammed ali , Accountant General , Royal Lighting L.L.C & Royal Furnishing LLC

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
by Ahmed mohsen , Senior Accountant , Main Poly Clinic

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
by حمادة فوزي جمعة عشماوي , مراجع حسابات الشركة , مؤسسة عاج العربية للمقاولات والصيانة

      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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