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The present article deals with the emergent factors that have stabilized the historical cost including educational methods, of legal protection, inaccurate generalization of initial book-keeping, protection of syndicates, and non-existence of a complete market. It then proceeds to analyze the critic...
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| Format: | Article |
| Language: | fas |
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University of Tehran
2002-12-01
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| Series: | بررسیهای حسابداری و حسابرسی |
| Online Access: | https://acctgrev.ut.ac.ir/article_13225_2eac788a8a7e75b00bbe5c00a5d7819b.pdf |
| Summary: | The present article deals with the emergent factors that have stabilized the historical cost including educational methods, of legal protection, inaccurate generalization of initial book-keeping, protection of syndicates, and non-existence of a complete market. It then proceeds to analyze the criticisms leveled at the cost price which cover unreal assumptions, internal inconsistencies of rules, regulations and accords, absence of a physical entity for accounting terms and figures, irrelevancy of accounting information to the decision-making models and negative implications of the historical cost.
In another section, the arguments supporting the historical cost such as the assessment of stewardship, historicism and decision-making, have been explained. The research also discusses the adverse effects of the cost price on investors, businesses, accounting professionalism and the institutes in charge of accounting standards accreditation. In conclusion, a new accounting model tailored to the needs of the information age is suggested and the role of each one of the interested groups applying this model is accordingly discussed. |
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| ISSN: | 2645-8020 2645-8039 |