ACCOUNTING EXPERTISE

                *****ACCOUNTING***** Hi freinds  🙏.,             Today's discuss 5th accounting principles...  So let's discuss...   ★ HISTORICAL COST :-  The historical cost principle is a basic accounting principle under U.S. GAAP. Under the historical cost principle, most assets are to be recorded on the balance sheet at their historical cost even if they have significantly increased in value over time.   * Importance of historical cost :-  The concept of historical cost is important because market values change so often that allowing reporting of assets and liabilities at current values would distort the whole fabric of accounting, impair comparability and makes accounting information unreliable.   * Difference between historical cost and fair value:- Historical cost is the transaction price or the acquisition price at which asset was acquired or transaction was done, while Fair value is the market price that asset can fetch from the counterparty. ... However, Fair value b