- CFA Exams
- CFA Exam: Level I 2021
- 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! |