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Discuss the difference between Historical Value and Market Value.     How can accountant report on the...

Discuss the difference between Historical Value and Market Value.
    How can accountant report on the financial statements?

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Solution: Historical value It is the actual cost value. Generally all assets specially fixed assets reported on Historical value, unless there is any law requirement or forced by audit team Market value: t is the fair value of asset or liability at any point of time. Assets and liabilities are reported on market value when business revaluation or reengineering is required or when an impairment of asset is must. Reporting by an accountant: According to the business and law requirement, assets and liabilities are reported on Historical or market value. Once Assest and liabilities are originally occur, it is reported on historcal value According to the law, or impairment or appreciation need, assets and liabilities are reported on market value.

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