Reply to thread

Message: <blockquote data-quote="joshpoints" data-source="post: 1724357" data-attributes="member: 546465"><p>Dam you.  You're a day late and historical cost was correct.  But according to the teacher the historical cost principle seems to be on its way out and instead Fair value is being used.  So is it basically because you are listing the cost at a present value using a discounted rate and writing it up instead of just listing the obligation at the beginning for the full dollar amount of the obligation?  Also she said the other problems was the fact that the obligation is capitalized into the asset value.  But when you go to sell the asset the person buying the oil platform isn't going to pay you for the clean up obligation as they are going to have to do this themself.</p></blockquote><p></p>

Top