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Accounting standards have developed over time to reflect changes in the business world as well as...

Accounting standards have developed over time to reflect changes in the business world as well as changes in our ability to account for such changes. Using the example of marking assets and liabilities to their fair value, explain why you would expect accounting standards to change.
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Accounting standards have developed over time to reflect changes in the business world as well as changes in our ability to account for such changes.using the example of marking assets and liabilities to their fair value, explanation for the reason I would expect Accounting standards to change is as below:

Historical cost in the past now as markets have matured,it is more relevant and feasible to report some assets and liabilities at their fair values.

Historical cost is a cost measurement attribute under which asset and liability measurements are based on the amount given or received in an exchange transaction.

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