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4 Pages • Essays / Projects • Year: Pre-2021
The historical cost measurement is the most widely used valuating basis which to measure the value of an item based on its original amount when acquired (Canadian Accounting Standards Board, 2006). According to significant accounting policies of Woolworth organisation, the balance of cash and cost of property, plant and equipment in the asset side are recorded based on the historical amounts incurred in the past transaction. From the perspective of Liability, provision of annual leave for employees and dividend payable to shareholders are measured as its estimated amount which from the predetermined rates. Share capital is paid as its declared amount and general reverse is derived from its cumulative gain or loss, which are needed to use historical cost method.
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