Historical Cost Principle Definition + Concept Examples
This is due to the revaluation of intangible assets, allowing the company to make better business decisions. The difference of the asset’s current worth and the original cost is recorded as a “revaluation surplus.” This can add net worth to a business over time if assets continue to appreciate. For example, a commercial bakery might […]
Audit Assertions In The Audit Of Financial Statements
Mark is an accountant, and he is preparing the financial statements of a leading shipping company. The company’s manager has provided Mark with a series of audit assertions, which Mark should take into account to guarantee the good standing of the financial statements. The audit assertions are primarily regarding the correctness of the different elements […]