Loading....
Coupon Accepted Successfully!

 

Current Cost

  • Assets are carried out at the amount of cash or cash equivalent that would have to be paid if the similar asset was acquired currently.

Example: Raj purchased a machine at ₹ 8,00,000 on 01-01-2009. The similar machine if purchased now i.e. in 2014, would costs ₹ 15,00,000. So as per current cost basis, the machine’s value is ₹ 15,00,000.

  • Liabilities are carried out at the undiscounted amount of cash or cash equivalent that would be required to settle the obligation currently





Test Your Skills Now!
Take a Quiz now
Reviewer Name