Fair value vs historical cost
For historical cost when it says "valuing it at the original purchase price **less **depreciation" that means original price - depreciation right? The "less" does not mean ignoring depreciation.
It looks like you're new here. If you want to get involved, click one of these buttons!
For historical cost when it says "valuing it at the original purchase price **less **depreciation" that means original price - depreciation right? The "less" does not mean ignoring depreciation.
Comments
Correct. “Less” in this context just means subtraction - you’re not ignoring depreciation, you’re subtracting it to reflect the current book value of the asset.