Why Is the Historical Cost Principle So Important for Balance

question 73

Essay

Why is the historical cost principle so important for balance sheet reporting?

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Definitions:

Western Conceptions

Ideas, philosophies, and understandings that have their origins or are primarily developed and accepted in the Western world, encompassing views on society, ethics, governance, and more.

Karl Marx

A 19th-century philosopher, economist, and revolutionary socialist known for his critique of capitalism and development of historical materialism.

Opium of the People

A term coined by Karl Marx, referring to religion as something that provides comfort to the oppressed masses with an illusion of happiness, pacifying them and detracting from actual worldly sufferings.

Transcendent

Going beyond the limits of ordinary experience, this term refers to something that is above and beyond the material universe.