澳洲cpa《FR》习题： historical cost measurement
Which one of the following is not a criticism of historical cost measurement?
A It may result in the arbitrary allocation of cost to assets.
B Its application to assets that do not generate contractual cash flows is problematic.
C It has limited relevance to decision-making as it distorts performance measurement.
D Profits are recognised when realised rather than when prices or other values of assets and liabilities change.
The correct answer is Option B, which, relating to the application to assets that do not generate contractual cash flows, is a criticism of the value in use basis of measurement and does not apply to historical cost. Measurement at historical cost does not require the consideration of the ability of an asset to generate contractual cash flows.
Options A, C and D are all incorrect because they are criticisms of historical cost.