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August 7, 2020 at 11:25 am
so what if the price is low which is deflation ,the effect on both the historical & current value
March 5, 2019 at 6:36 pm
But when we follow current cost method, we will be revaluing the asset upward. Why didn’t we consider the effect of this upward revaluation on the profit?
July 18, 2018 at 2:37 am
Depreciation is lower based on the historical cost – as in the economy with growing inflation the cost will increase, so upon revaluation of your asset then your depn expense will increase
June 30, 2018 at 8:10 pm
Why is depreciation lower in economy with growing inflation?
August 16, 2018 at 3:33 pm
I presume it cause the asset is calculated at historical cost as against the current value. Therefore the asset is undervalued resulting in lower depreciation which will eventually increase profit.
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