Alternative valuation method which compete for inclusion in
the accounts are discussed in this essay. Primary goal is to
differentiate clearly three alternative methods of accounting:
historical Cost. Current Cost and Exit Value.
The frist section, precisely and neutralIy , explian the three
alternative valuation methods. The problem is explain through
separable questions which consider a specific, simple case and try
to demonstrate that one of the alternative methods is superior to
the others. The second section explain the criterion that will
discriminate between alternatives which help the selection of the
preferred method.
The Purpose of thired section is to analysis the breaking apart and
discover commonalities which permit a synthesis - the putting
together - and weave a general principle that is founded on
irreducible and stubborn facts.
The article conclude that the criterion for selection proposed is
relevance to specific decision models as opposed to unspecific
usefulness or as opposed to criteria that do not discriminate.
The first & second section of this essay are published on Iranian
Accounting Review No. 6,7.
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