cost determines book valuation

简明释义

成本决定帐面价格

英英释义

例句

1.In real estate, cost determines book valuation based on the purchase price and any improvements made.

在房地产中，成本决定账面价值基于购买价格和所做的任何改进。

2.Investors should understand that cost determines book valuation when assessing a company's assets.

投资者在评估公司的资产时应理解，成本决定账面价值。

3.When preparing financial statements, remember that cost determines book valuation for inventory items.

在准备财务报表时，请记住，成本决定账面价值适用于库存项目。

4.In accounting, the principle that cost determines book valuation is fundamental for asset reporting.

在会计中，成本决定账面价值的原则对于资产报告至关重要。

5.The auditor explained that cost determines book valuation and affects the overall financial health of the company.

审计师解释说，成本决定账面价值并影响公司的整体财务健康。

作文

In the world of finance and accounting, the phrase cost determines book valuation is a fundamental principle that guides how assets are recorded and reported on financial statements. This concept emphasizes that the value of an asset on the balance sheet should reflect the cost incurred to acquire it, rather than its current market value or potential future earnings. Understanding this principle is crucial for both investors and business owners as it affects decision-making and financial analysis.When a company acquires an asset, whether it be machinery, real estate, or inventory, the initial cost includes not only the purchase price but also any additional expenses incurred to bring the asset to a usable state. These costs may include transportation fees, installation charges, and taxes. According to the principle that cost determines book valuation (成本决定账面价值), the total of these expenditures becomes the asset's book value. This method ensures consistency and reliability in financial reporting, allowing stakeholders to make informed decisions based on accurate information.One of the primary reasons for adhering to the principle of cost determines book valuation is the objectivity it brings to financial statements. Market values can fluctuate significantly due to various factors such as economic conditions, investor sentiment, or changes in demand. By relying on historical cost, companies can avoid the volatility associated with market valuations, providing a more stable and consistent basis for financial reporting.However, this approach is not without its criticisms. Critics argue that using historical cost can lead to a misrepresentation of an asset's true value, particularly in times of inflation or when significant technological advancements occur. For instance, if a company purchased a piece of equipment for $100,000 a decade ago, its book value may still reflect that original cost, even though similar equipment may now be valued at $250,000 due to advancements in technology. This discrepancy can impact how investors perceive a company's financial health and its ability to generate future profits.Moreover, the principle of cost determines book valuation can lead to challenges in assessing a company's performance. When evaluating profitability or return on investment, relying solely on historical costs may obscure the true economic reality of the business. As a result, some companies adopt alternative valuation methods, such as fair value accounting, which seeks to provide a more accurate reflection of an asset's current worth. Fair value accounting considers market conditions and other relevant factors, allowing for a more dynamic assessment of an asset's value over time.In conclusion, the principle that cost determines book valuation plays a vital role in financial reporting and accounting practices. While it provides a stable and objective framework for valuing assets, it also presents challenges related to the representation of an asset's true worth in a changing economic landscape. As businesses navigate these complexities, it is essential for them to strike a balance between adhering to traditional accounting principles and adapting to modern valuation methods that reflect the realities of the market. Ultimately, understanding the implications of cost determines book valuation is key for stakeholders seeking to make informed financial decisions and assess the long-term viability of a company.

在金融和会计的世界中，短语成本决定账面价值是一个基本原则，指导资产如何在财务报表上记录和报告。这个概念强调，资产在资产负债表上的价值应反映获得该资产所产生的成本，而不是其当前市场价值或潜在未来收益。理解这一原则对投资者和企业主至关重要，因为它影响决策和财务分析。当一家公司获得资产时，无论是机械、房地产还是库存，初始成本不仅包括购买价格，还包括使资产达到可用状态所产生的任何额外费用。这些费用可能包括运输费用、安装费用和税款。根据成本决定账面价值（cost determines book valuation）这一原则，这些支出的总和成为资产的账面价值。这种方法确保了财务报告的一致性和可靠性，使利益相关者能够基于准确的信息做出明智的决定。遵循成本决定账面价值原则的主要原因之一是它为财务报表带来的客观性。市场价值可能由于经济条件、投资者情绪或需求变化等各种因素而大幅波动。通过依赖历史成本，公司可以避免与市场估值相关的波动，为财务报告提供一个更稳定和一致的基础。然而，这种方法并非没有批评。批评者认为，使用历史成本可能导致资产真实价值的误表示，特别是在通货膨胀时期或技术进步显著发生时。例如，如果一家公司十年前以100,000美元的价格购买了一台设备，其账面价值可能仍然反映该原始成本，即使类似设备现在的价值可能由于技术进步而达到250,000美元。这种差异可能影响投资者对公司财务健康状况及其产生未来利润能力的看法。此外，成本决定账面价值原则可能在评估公司业绩时带来挑战。当评估盈利能力或投资回报时，仅仅依赖历史成本可能掩盖企业的真实经济现实。因此，一些公司采用替代的估值方法，例如公允价值会计，旨在提供资产当前价值的更准确反映。公允价值会计考虑市场条件和其他相关因素，使资产价值随时间动态评估。总之，成本决定账面价值原则在财务报告和会计实践中发挥着至关重要的作用。虽然它为资产估值提供了一个稳定和客观的框架，但在变化的经济环境中也带来了有关资产真实价值表现的挑战。随着企业应对这些复杂性，找到遵循传统会计原则与适应现代估值方法之间的平衡至关重要，这些方法反映了市场的现实。最终，理解成本决定账面价值的影响对于寻求做出明智财务决策和评估公司长期可行性的利益相关者来说是关键。