Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 6 - Accounting and the Time Value of Money - Review and Practice - Using Your Judgment - Accounting, Analysis, and Principles - Page 312: Principles

Answer

Relevance is traded off against faithful representation. Fair value amount is relevant, but it lacks the attribute of faithful representation due to the lack of complete information pertaining to the historical costs of the assets.

Work Step by Step

Relevance is traded off against faithful representation. Fair value amount is relevant, but it lacks the attribute of faithful representation due to the lack of complete information pertaining to the historical costs of the assets.
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