Accounting: Assumptions
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Accounting: Assumptions

Updated Jun 19, 2024

What you'll learn

  • Here we examine three assumptions relevant to the valuation of assets.
Course Description

All companies need to assign a monetary value to their assets. There are two approaches that can be used for valuation purposes; the historical cost principle or the fair value principle. Sometimes a company can choose between these methods, but often local accounting rules determine the appropriate method. Here we examine three assumptions relevant to the valuation of assets.