- CFA Exams
- CFA Level I Exam
- Study Session 7. Financial Reporting and Analysis (2)
- Reading 22. Understanding Balance Sheets
- Subject 2. Measurement Bases of Assets and Liabilities
CFA Practice Question
Current assets are always valued at historical cost. True or False?
Correct Answer: False
Some are valued at cost or the lower of cost or market value.
User Contributed Comments 6
User | Comment |
---|---|
kalps | Stock, can be valued at lower of cos or Market (Net realisable value or replacement cost under US gaap) |
chenyx | Some current assets are value at cost or lower of cost or market value. |
guna | Best example to think is "CASH" ignoring effects of inflation. |
MattNYC | AR are estimated amounts too, not at LCM |
Shaan23 | Cash at fair value or amortized cost A/R at Net realizable value Inventory - IFRS - lower of cost or NRV -- GAAP - Lower of cost or market. |
farhan92 | guna - nice one! |