What is the traditional financial accounting measurement model?

The traditional financial accounting measurement model is historical cost measurement.

Historical cost measurement refers to the amount of cash or cash equivalents paid when acquiring assets, or the fair value of the consideration paid when acquiring assets;

Liabilities are measured according to the amount of money or assets actually received by them according to their current obligations, or the contract amount of their current obligations, or according to the repayment amount of liabilities in daily activities and the amount of cash or cash equivalents they need to pay.

Extended data

Characteristics of accounting measurement model

1, historical cost/nominal currency. This accounting measurement model is based on monetary measurement hypothesis, matching principle and conservatism principle. Its advantage lies in its objectivity and verifiability, which is conducive to the performance of asset custody responsibility. The disadvantage is that it does not consider the change of currency value, can not adapt to the change of economic environment, can not reflect the real financial situation of enterprises, and is not suitable for management and investment decisions.

2. Currency unit of historical cost/constant purchasing power.

Compared with the historical cost/nominal money measurement model, this accounting measurement model is different in that it considers the general price change level, but does not consider individual price changes, and it is also difficult to choose the general price index.

3. Current cost/nominal currency measurement mode. This accounting measurement model denies the monetary measurement assumption on which the traditional historical cost accounting measurement is based, and the measured income includes the income from asset storage, which belongs to the valuation based on the input value. Its advantage is that it can correctly measure the income of enterprises and realize the consistency of pricing in time and method. Its disadvantage is that the actual cost is difficult to determine, and there is also a lack of vertical comparability between report items.

4. Current cost/constant purchasing power currency unit.

This accounting measurement model attempts to eliminate the influence of individual price changes through the current cost measurement attributes, and eliminate the influence of general price changes by adjusting the constant purchasing power monetary unit, thus comprehensively solving the problem of the influence of price changes on accounting information. The disadvantage is that the cost of obtaining accounting information is high and it lacks objectivity and feasibility.

Baidu Encyclopedia-Historical Cost Measurement

Baidu Encyclopedia-Accounting Measurement Mode